Mathematics, 11.03.2020 01:30 pdipti725
There are two types of farming tractors on the market, the FT250 and the FT500. The only difference between the two is that the FT250 is more prone to accidents than the FT500. Over their lifetime, 1 in 10 FT250s is expected to result in an accident, as compared to 1 in 25 FT500s. Further, 1 in 1,000 FT250s is expected to result in a fatal accident, as compared to only 1 in 5,000 FT500s. The FT250 sells for $125,000 while the FT500 sells for $137,000. At these prices, 2,000 of each model are purchased each year. What is the statistical value farmers place on avoiding a tractor accident? What is the value of a statistical life of a farmer? g
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There are two types of farming tractors on the market, the FT250 and the FT500. The only difference...
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