You are the Vice-President for Sales at a major Automobile Company.In response to current needs you have developed an economical sub-compact vehicle.You anticipate selling 11 million vehicles on this production run.

One of your engineering teams discovers that due to the design there is a higher probability of the vehicles catching fire upon rear impact accidents.You are given a Cost /Benefit Analysis which shows it will cost $22.00 per vehicle to change the design at a cost of$242,000,000.00.This change will result in 180 less deaths.

The National Highway Traffic Safety Administration shows the "cost to society" for each estimated fatality is $400,000.00.This means the design change will save $72,000,000.00.Using the standard Cost /Benefit Analysis it appears that it does not make sense to make the design change.

Is a risk/benefit analysis the proper framework to be used in this situation?

How does Utilitarianismand Profit Maximization apply to the decision to make the changes?

How would you apply Judge Hand's BPL formula?