You have the following equation relating job risk R to wages W: W = .01*R + XB, where XB indicates control for the following confounders: education, job experience, and income. Assume W= annual wages=50,000

A. If the change in R = a 1 in 10,000 higher chance of death in a year, how much more would an individual need to be paid to be willing to assume this risk?

B. What is the implied statistical value of a year of life based on this model?

C. What do you think would happen to the estimated relationship between R and W if none of the three confounders were included in this model? Explain.

Answer rating: 100% (QA)

A The individual would need to be paid an additional 500 to be ... View the full answer