Suppose a human life is worth $10 million.Installing a better lighting system in the city park would reduce the risk of someone being murdered there from 2.6 to 1.9 percent over the life of the system.The city should install the new lighting system if its cost does not exceed
A)$70,000.
B)$190,000.
C)$260,000.
D)$10,000,000.

Question

Quizplus · Accepted Answer

The reduction in risk is 0.7% (2.6% - 1.9%). The value of this risk reduction is 0.007 * $10,000,000 = $70,000. Therefore, the city should install the system if it costs $70,000 or less.

Suppose a Human Life Is Worth $10 Million