Consider paid firefighters in two otherwise identical state. (Call them Arizona and California.) Arizona is mostly desert, and lacks large, extensive forests. As a result, fires tend to be small and infrequent, making firefighting less danger- ous. In Arizona, only 2 in 1,000 firefighters are die on duty per year. California, on the other hand, has large, extensive forests and severe droughts in the summer, leading to a high risk of large-scale, dangerous forest fires. In California, firefighters die at a rate of 5 per 1,000, but are paid $25, 000 more per year. Use this information to calculate the value of a statistical life.