Maria can work as a coal miner, where the probability of being killed in a work-related accident is 5/8,000, or she can earn work as a truck driver, where the probability of being killed in a work-related accident is 2/8,000. Using the compensating differential approach, the value of Maria's life is $4 million. How much more per year will working as a coal miner pay than working as a truck driver?
A) $1,500
B) $2,000
C) $2,500
D) $3,500

Question

Quizplus · Accepted Answer

The Answer of Maria can work as a coal miner, where the probability of being killed in a work-related accident is 5/8,000, or she can earn work as a truck driver, where the probability of being killed in a work-related accident is 2/8,000. Using the compensating differential approach, the value of Maria's life is $4 million. How much more per year will working as a coal miner pay than working as a truck driver?
A) $1,500
B) $2,000
C) $2,500
D) $3,500

Maria Can Work as a Coal Miner, Where the Probability