The Occupational Safety and Health Administration (OSHA) has determined that 100 workers are exposed to a hazardous chemical used in the production of diet soft drinks. The cost of imposing a regulation that would ban the chemical is $10 million. OSHA has calculated that each person saved by this regulation has a value equal to $10 million. If the benefits are exactly equal to the costs, what probability is OSHA using to assess the likelihood of a fatality from exposure to this chemical?
A)0.001
B)0.01
C)0.1
D)1.0

Question

Quizplus · Accepted Answer

OSHA is using a probability of 0.01, meaning they expect 1 out of the 100 workers to potentially face a fatality, equating the $10 million cost to the value of one life saved.

The Occupational Safety and Health Administration (OSHA) Has Determined That