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:

Equal Probability

A statistical condition where all outcomes have the same chance or likelihood of occurring.

Experimental Method

A research method involving the manipulation of variables to establish cause-and-effect relationships.

Variable Manipulation

The systematic adjustment or alteration of the independent variables in an experiment to observe their effect on the dependent variables.

Controlled Conditions

A methodological practice in experiments where all variables are kept constant except for the independent variable being tested.