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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