Suppose That the Average Person in a Group of 150,000

question 10

Multiple Choice

Suppose that the average person in a group of 150,000 people is willing to pay $10 to lower the probability of a random death among members of that group from 10 in 150,000 to 9 in 150,000. Then the total willingness to pay is $10 (150,000) = $1,500,000 is equal to

• A) the willingness to accept an additional death in the group, based on willingness to pay.
• B) the value of a statistical life, based on willingness to pay.
• C) the value that each individual places on their own life, based on willingness to pay.
• D) the average lifetime earned wage rate of members in the group.

---

Definitions:

Level Shift

A sudden and lasting change in the average value of a time series or signal.

Level Shift

A sudden, lasting change in the time series data that can significantly affect the data's trend, usually detected through statistical analysis.

Cycle

In the context of data analysis, a period or sequence of events that repeats regularly.

Trend

The general direction in which something is developing or changing over time.