Find the optimal level of safety (probability of an accident) from a societal perspective using the data on the costs of safety given in the table below. Assume that an accident imposes costs on a victim equal to $500,000.

Probability of loss Safety Expenditures

0.03 $0

0.02 $1,000

0.015 $2,000

0.012 $3,000

0.0095 $4,000

0.009 $5,000