To increase safety at a bad intersection, the mayor must decide whether to install a traffic light at a cost of $45,000. If the traffic light reduces the risk of fatality by 0.4 percent, and the value of a human life is estimated to be $10 million, the mayor should
A)install the light because the expected benefit of $400,000 is greater than the cost.
B)install the light because the expected benefit of $45,000 is greater than the cost.
C)not install the light because the expected benefit of $45,000 is only equal to the cost.
D)not install the light because the expected benefit of $40,000 is less than the cost.

Question

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The Answer of To increase safety at a bad intersection, the mayor must decide whether to install a traffic light at a cost of $45,000. If the traffic light reduces the risk of fatality by 0.4 percent, and the value of a human life is estimated to be $10 million, the mayor should
A)install the light because the expected benefit of $400,000 is greater than the cost.
B)install the light because the expected benefit of $45,000 is greater than the cost.
C)not install the light because the expected benefit of $45,000 is only equal to the cost.
D)not install the light because the expected benefit of $40,000 is less than the cost.

To Increase Safety at a Bad Intersection, the Mayor Must