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Suppose That the Risk of Dying in an Automobile Accident

question 44

Multiple Choice

Suppose that the risk of dying in an automobile accident is reduced by 1 in 10,000 through the use of front seat air bags and that 10,000 auto buyers choose to purchase these air bags as an option at a price of $250. What is the implicit value of a life to these buyers?


Definitions:

Cerebral Hemispheres

The two halves of the brain, the left and right hemispheres, each responsible for different functions and controlling opposite sides of the body.

Perceiving

The process of becoming aware or conscious of something through the senses.

Somatosensory Cortex

A part of the brain that processes and interprets sensory information from various parts of the body, involved in detecting touch, temperature, pain, and body position.

Occipital Lobes

Regions of the brain located at the back of the head, responsible for processing visual information.

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