There are 1,000 workers involved in a construction project. Instead of postponin

Question

There are 1,000 workers involved in a construction project. Instead of postponing construction of his building, the building owner Mr. P. Murt tells the construction company manager that he is willing to pay each worker an additional $1,000 each just to continue working under bad weather conditions. Workers accept the offer when told even though the odds of dying are now 1 in 100.

This means that both Mr. P. Murt and workers value each worker’s life to equal what amount?

Assume there are 2,000 workers, what is the value of 1 life?

Assume there are 3,000 workers, what is the value of 1 life?

Explanation / Answer

$1,000 per worker would be paid as sort of risk compensation by Murt

If there are 2,000 workers then we have to assume that 1% of this 2,000 workers are going to die, that 1% is 20 workers.

The total amount paid by company for all workers is 2 million and for this 2 million 20 have died. that is 100,000 dollars per worker is the amount that they accepted

IF 3,000 workers work

3 million and 30 have died which still is 100,000 per deceased worker.

so 100,000 is the value of life they have asked for.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.