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  • Directions for question : Consultancy firm M/S McKinsey & Company was hired by the World Health Organization in 2022 and was given the task of evaluating the tot

Directions for question :

Consultancy firm M/S McKinsey & Company was hired by the World Health Organization in 2022 and was given the task of evaluating the total health budgets (in million USD) of five countries namely Ghana, Egypt, Nigeria, Libya and South Africa.                    

Each of the above mentioned countries allocates its total health budget behind two parameters – healthcare budget and research and development budget. Moreover the total health budget of each country was different, and was a multiple of 50 million USD. 

The report submitted by the firm had the following points : 

i)  Among the five countries, Ghana had the lowest total health budget and also spent the lowest on healthcare. 

ii) South Africa, which had the highest total health budget and Egypt were the only countries to allocate 50% of their total health budget to healthcare. 

iii) Nigeria’s healthcare budget allocation matched with that of Egypt. Also their research and development budget allocation was double than that of Ghana's research and development budget allocation. 

iv) Libya was second to only South Africa and ahead of other countries in the total health budget as well as allocation to healthcare budget and research and development budget. 

v) Ghana's healthcare budget allocation was only 10% of the highest healthcare budget allocation amongst all the five countries which was 250 million USD. 

vi) Except Ghana's healthcare budget allocation, all other healthcare budget allocations were a multiple of 50 million USD. 

From the above report, find the answers to the questions that follow :

Question:

The ratio of the Research and Development Budget allocation to the Healthcare Budget allocation is termed as the RPR Index. What was the RPR Index of the five countries taken together as per the report of M/S McKinsey & Company ?

Option: 1

0.81

 

 


Option: 2

1.24

 


Option: 3

2.32

 


Option: 4

2.87


Answers (1)

best_answer

We already know that :

 

 

Healthcare Budget

Research & Development Budget

Total Health Budget

Ghana

25 million USD

75 million USD

100 million USD

Egypt 

100 million USD

100 million USD

200 million USD

Nigeria

100 million USD

150 million USD

250 million USD

Libya

150 million USD 

200 million USD

350 million USD 

South Africa

250 million USD

250 million USD

500 million USD

The total Research and Development Budget allocation of all the five countries 

= (75+100+150+200+250) 

= 775 million USD

The total Healthcare Budget allocation of all the five countries 

= (25+100+100+150+250) = 625 million USD

 

Hence, the RPR Index of the five countries taken together = 775/625 = 31/25 = 1.24

 

Posted by

Gaurav

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