Highway engineers want to improve a dangerous stretch of highway. They expect that it will reduce the risk of someone dying in an accident from 5.3 percent to 2.1 percent over the life of the highway. If a human life is worth $10 million, then the project is worth doing as long as it does not cost more than
A)$53,000.
B)$210,000.
C)$320,000.
D)$2.1 million.

Question

Quizplus · Accepted Answer

The reduction in risk is 5.3% - 2.1% = 3.2%. The value of a human life is $10 million, so the project is worth 3.2% of $10 million, which is $320,000.

Highway Engineers Want to Improve a Dangerous Stretch of Highway