To Increase Safety at a Bad Intersection, the Mayor Must

question 425

Multiple Choice

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.

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Definitions:

Planning

Planning is the process of setting goals, defining strategies for achieving those goals, and developing plans to integrate and coordinate work activities across an organization or individual effort.

Expected Results

Anticipated outcomes or performance results based on specific actions, strategies, or processes.

Income Statements

Financial reports that show a company's revenues, expenses, and net income or loss over a specific period of time.

Chief Financial Officer

The senior executive responsible for managing the financial actions of a company, including tracking cash flow and financial planning as well as analyzing the company's financial strengths and weaknesses and proposing corrective actions.