Suppose the cost to erect a tornado siren in a small town is $15,000. In addition, suppose the value of a human life is $10 million. By what percentage would the siren need to reduce the risk of a fatality for the benefits of the siren to exceed the costs of the siren?

a. By at least 0.015 percentage points.
b. By at least 0.15 percentage points.
c. By at least 1.5 percentage points.
d. By at least 5 percentage points.

To be able to get by what percentage would the siren need to reduce the risk of a fatality for the benefits of the siren to exceed the costs of the siren, we would need divide $15,000 by $10,000,000 and then we multiply it by 100%

Which we have as follows;

= (15000/10000000)×100

=(0.0015)×100

=0.15

So option B is the correct answer which is By at least 0.15 percentage.

raphealnwobi raphealnwobi · Answer 2 · 2020-03-26T02:51:02+01:00

Answer:

b. By at least 0.15 percentage points.

Explanation:

Given that the value of each human life in a small town is $10 million = $10000000, and the cost to erect a tornado siren is $15000.

Therefore in other to calculate the percentage the siren need to reduce the risk of a fatality for the benefits of the siren to exceed the costs of the siren, we need to divide the cost needed to erect the tornado siren by the cost of a human life.

Therefore, the percentage would the siren need to reduce the risk of a fatality for the benefits of the siren to exceed the costs of the siren = ($15000)/$10000000 × 100 = 0.15%

At least 0.15 % is needed to reduce the risk of a fatality for the benefits of the siren to exceed the costs of the siren