Question: Fatal risks from commercial aviation are roughly 1 in 2 million takeoff-landing cycles An individual takes a job with 4 takeoff-landing cycles per week For
Fatal risks from commercial aviation are roughly 1 in 2 million takeoff-landing cycles An individual takes a job with 4 takeoff-landing cycles per week For N cycles Risk=1-(1-riskpercycle)N Job has an annual salary $10,000/ year more than alternative job What can we say about the individuals valuation of fatal risk?
| 1. | The individual values fatal risk at 1.2 million per statistical life. | |
| 2. | The individual values fatal risk at less than 1.2 million per statistical life. | |
| 3. | The individual values fatal risk at more than 1.2 million per statistical life. | |
| 4. | The individual values fatal risk at less than 96 million per statistical life. | |
| 5. | The individual values fatal risk at more than 96 million dollars per statistical life |
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