Question
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
- 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.
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Understanding Business Ethics
Authors: Peter A. Stanwick, Sarah D. Stanwick
3rd Edition
1506303234, 9781506303239
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