After a recent spike in violent crime, the local police department wants to spend $550,000 on a new crime fighting initiative. If a human life is worth $9 million, the crime fighting initiative is worth the cost if it reduces the risk of someone dying from crime by at least
A)3.5 percentage points.
B)5.5 percentage points.
C)6.1 percentage points.
D)9.0 percentage points.

Question

Quizplus · Accepted Answer

The initiative is worth the cost if the value of lives saved is at least $550,000. If a life is worth $9 million, then $550,000/$9,000,000 = 0.061, or 6.1 percentage points, is the minimum reduction needed.

After a Recent Spike in Violent Crime, the Local Police