Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose you conduct a contingent valuation survey based on the question If a program to avoid future oil spills in the Gulf of Mexico would

  1. Suppose you conduct a contingent valuation survey based on the question “If a program to avoid future oil spills in the Gulf of Mexico would cost X dollars, would you support it?”. You have 4 versions of the questionnaire with different values of the program’s cost X: 5, 10, 15, 20. You obtain the following percentages of individuals who answer “yes” to the question.

Survey

Cost of program (X)

Percentage Yes

A

5

80

B

10

65

C

15

30

D

20

20

Assuming that your survey sample is representative of 100 million households, calculate the total willingness to pay (in million dollars) for the program using the method presented in class.

Step by Step Solution

3.55 Rating (148 Votes )

There are 3 Steps involved in it

Step: 1

To calculate the total willingness to pay for the program we need to multiply the percentage of ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding Business Ethics

Authors: Peter A. Stanwick, Sarah D. Stanwick

3rd Edition

1506303234, 9781506303239

More Books

Students also viewed these Economics questions