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The mayor of Maize is considering proposals to deal with an unsafe intersection. She could install a traffic light at a cost of $ 5

The mayor of Maize is considering proposals to deal with an unsafe intersection. She could install a traffic light at a cost of $50,000 or she could install stop signs at a cost of $5,000. The traffic light is expected to reduce the risk of fatality by 0.45 percent and the stop signs are expected to reduce the risk of fatality by 0.054 percent. If the value of human life is estimated to be $10 million, what choice should the mayor make? Briefly explain making sure to include any calculations used by economists to make the decision. Be careful with the decimals (In decimals, 10 percent =0.1 and 1 percent is 0.01).
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