N6

Compute the VSL for the following scenarios:

The city installs new smart technology, the purpose of which is to reduce crosswalk pedestrian and automobile collisions. The technology will cost $10,000 per intersection. It will prevent 1 pedestrian death each year, where there are an estimated 70 million annual pedestrians.

The University installs improved smoke detectors in the dorms. Each detector costs $100. It should reduce the mortality risk of each dorm room by 1 in 10,000,000 (0.0000001%).

You purchase a car seat for your newborn. The car seat costs $200. Each year there are 608 child deaths from car accidents, 200 of which involve a child not in a car seat. You may assume that every child that died in a car seat would have also died if they had not been in a car seat. 200*