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?

• A) $2 million.
• B) $2.5 million.
• C) $3 million.
• D) $250,000.

Identify and understand various forms and types of deductive arguments.

Differentiate between valid and sound arguments.

Recognize and evaluate categorical syllogisms.

Understand the concept of validity in deductive reasoning.

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Definitions:

Information

A set of data or details about a particular subject, often processed to be useful.

Understanding

The ability to comprehend or grasp the meaning, nature, or importance of something.

Highly-Valued

Something considered to be of great importance or worth.

Management Skill

The ability to plan, organize, direct, and control individuals or groups of people to achieve specific goals.