two big questions!

Two companies require identical skills and training from their workers and both employ 5,000 people. On average, RealSafe has one worker fatality per year, while NotsoSafe has four worker fatalities per year. Jobs at RealSafe pay $4,000/year less than at NotsoSafe. What is the value of statistical life based on this data? O a $10 million N O b. $7.3 million OC. $6.7 million O d. $5.5 million Imagine you are studying the impact on home prices in New Bedford, Massachusetts, the site of a decommissioned Naval base widely known to have PCB contaminants and now designated as a Superfund site. You have gathered data and carefully run regressions of sales prices on home characteristics and have the results below. Use 1-2 sentences to explain how the signs on the coefficient estimates for 1) distance to Boston and 2) distance to the Superfund site make sense and what they mean on the margin for housing prices. Be specific with the data given, similar to examples in class and in video/slides. Hedonic Regression Results Y-variable = home sales price in New Bedford, MA (in 2012 dollars) Variable Coefficient Estimate 5000 10000 Intercept Kitchen remodel in last 5 years (dummy) Lot size (acres) Distance to Boston (miles) Feet from designated Superfund site with PCBs 150 -100 90