Question
A village has 2500 households with 1000 them being below poverty line. However, recognizing poor to provide support is expensive task. So, an NGO decided
A village has 2500 households with 1000 them being below poverty line. However, recognizing poor to provide support is expensive task. So, an NGO decided to implement cash transfer using proxy limiting eligibility to households with widow/widower household heads. Suppose a transfer program that provide transfers of $50 to all eligible households. Assume 30 percent of poor households are with widow/widower household heads; and 5 percent of non- poor households are with widow/widower household heads. Assume that program staff can identify widow/widower household heads perfectly. Suppose the program is meant to help the poor households in the community and each program as $500 administrative cost. What percent of money reached right targeted people in each of the program? (Show all steps to receive complete credit).
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