The following equation relating job risk R to wages W:

W = .01*R + XB,

where XB indicates control for the following confounders: education, job experience, and income. Assume W= annual wages=50,000

1. If the change in R = a 1 in 10,000 higher chance of death in a year, how much more would an individual need to be paid to be willing to assume this risk?

2. What is the implied statistical value of a year of life based on this model?