The cost of repositioning an automobile gas tank for greater safety is $11 per vehicle for 12.5 million vehicles. The automobile company places a value on life of $500,000. To justify redesigning the location of the gas tank, the number of deaths expected to occur if the gas tank location is not redesigned would have to be at least:
A) 1.
B) 100.
C) 175.
D) 275.

Question

Quizplus · Accepted Answer

The cost of repositioning the gas tank is $11 per vehicle for 12.5 million vehicles, or $137.5 million. The automobile company places a value on life of $500,000. To justify redesigning the location of the gas tank, the number of deaths expected to occur if the gas tank location is not redesigned would have to be at least 137.5 million / 500,000 = 275.

The Cost of Repositioning an Automobile Gas Tank for Greater