Suppose a Treacherous Stretch of Road Winds Through Deadman's Canyon

question 92

Multiple Choice

Suppose a treacherous stretch of road winds through Deadman's Canyon for 5 miles.A highway department study estimates that better lighting would reduce the traffic fatality rates as follows: $$\begin{array} { c c c } \text { Number of lights } & \text { Estimated deaths per year } & \text { Total installation cost (in millions) } \\0 & 3 & \$ 0 \mathrm {~m} \\1 & 2 & \$ 3 \mathrm {~m} \\2 & 1.5 & \$ 7 \mathrm {~m} \\3 & 1.2 & \$ 12 \mathrm {~m} \\4 & 1 & \$ 18 \mathrm {~m} \\5 & 0.9 & \$ 25 \mathrm {~m}\end{array}$$
Suppose that experts have estimated the statistical value of a life saved to be $8m.The marginal benefit of the third light installed is ____ and the marginal cost is ____.Therefore the third light ____ be installed.

• A)$2.4m;$5m;should not
• B)$8m;$5m;should
• C)$300,000;$5m;should not
• D)$500,000;$1m;should not

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Definitions:

Speech

The vocalized form of human communication, which is based upon the syntactic combination of items drawn from the lexicon.

Subliminal Perception

A concept referring to the registration of sensory input without conscious awareness, typically used to describe circumstances where stimuli are perceived without conscious recognition.

Conscious Awareness

The state of being aware of one’s thoughts, feelings, and environment at the moment.

Word Pair

Two words presented together as a unit, often used in memory and association studies.