You have been hired by the government of Oklahoma to conduct a cost-benefit analysis of saferooms in permanent homes in Oklahoma City. After much research, you collect the following data: .. Annualized cost of a saferoom (assuminge a 50-yr useful life of a shelter and discount factor of 3%) Number of permanent homes Average annual tornado fatalities Average annual injuries Proportion of fatalities in permanent homes Proportion of injuries in permanent homes . $1152 747,7574 6.76 people 77.9 people 31.1% 31.1% Assume that all permanent homes will need to be equipped with saferooms and that saferooms will prevent all fatalities and injuries in permanent homes. Based on this information, you make the following calculations: 29. Referencing labour market studies you find that jobs with a 1/100 greater chance of non-fatal injury in a year offer a wage premium of $500 per year. From this data you find the estimate for the value of a statistical injury, and using this estimate you convert the annual injuries in permanent homes into annual fatality equivalents. 30. Adding injuries in fatality equivalents to your earlier estimates of fatalities avoided in permanent homes, you recalculate the annual cost-per-fatality avoided in permanent homes to be $ million 31. With your complete cost-benefit analysis at hand, you conclude that fatalities plus injuries prevented are (sufficient/insufficient) to justify purchase of saferooms by residents of permanent homes. 32. With your complete cost-benefit analysis at hand, you conclude that non-purchase of saferooms by residents of permanent homes (is/is not) indicative of market failure. You have been hired by the government of Oklahoma to conduct a cost-benefit analysis of saferooms in permanent homes in Oklahoma City. After much research, you collect the following data: .. Annualized cost of a saferoom (assuminge a 50-yr useful life of a shelter and discount factor of 3%) Number of permanent homes Average annual tornado fatalities Average annual injuries Proportion of fatalities in permanent homes Proportion of injuries in permanent homes . $1152 747,7574 6.76 people 77.9 people 31.1% 31.1% Assume that all permanent homes will need to be equipped with saferooms and that saferooms will prevent all fatalities and injuries in permanent homes. Based on this information, you make the following calculations: 29. Referencing labour market studies you find that jobs with a 1/100 greater chance of non-fatal injury in a year offer a wage premium of $500 per year. From this data you find the estimate for the value of a statistical injury, and using this estimate you convert the annual injuries in permanent homes into annual fatality equivalents. 30. Adding injuries in fatality equivalents to your earlier estimates of fatalities avoided in permanent homes, you recalculate the annual cost-per-fatality avoided in permanent homes to be $ million 31. With your complete cost-benefit analysis at hand, you conclude that fatalities plus injuries prevented are (sufficient/insufficient) to justify purchase of saferooms by residents of permanent homes. 32. With your complete cost-benefit analysis at hand, you conclude that non-purchase of saferooms by residents of permanent homes (is/is not) indicative of market failure