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Q3 (5 points) Suppose a contingent valuation survey was administered on a sample of 600 Lethbridge residents to estimate their willingness-to-pay (WTP) to cleanup
Q3 (5 points) Suppose a contingent valuation survey was administered on a sample of 600 Lethbridge residents to estimate their willingness-to-pay (WTP) to cleanup groundwater contamination from leaky underground fuel storage tanks at gas stations. A referendum method was used for the WTP question. Referendum question: Respondents were asked, "Would you vote to require gas stations begin tank overhaul immediately if it were on the ballot right now?" Yes No WTP question: If 'Yes', "Would you be willing to pay $ per month for the next 12 months to share the cleanup cost?" (A randomly chosen amount from $3.50 to $10.0 was used in the blank for each respondent). Their responses were summarized in this table. Proposed clean-up cost ($/month) # of people voted "Yes" (willing to pay) 10.00 80 8.00 100 6.00 120 4.50 100 4.00 110 3.50 90
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