FrontPage: From yesterday

– What value

would you place on a human life?

The Last Word: Ch1 Reviewing Key Concepts due next Wed.

Ch 1 quiz next Wed.

Cost/Benefit Analysis and the Value of a Human Life

How do we know when a trade-off is worth it?

•Consider the following situation:▫Your grandmother needs a procedure to save her

life. She is 94 years old, and has been in good health up to this point. But the procedure will cost $2.5 million and there is a 33% failure rate. What will you decide?

From “Fight Club” - Narrator: A new car built by my company leaves somewhere traveling at 60 mph. The rear differential locks up. The car crashes and burns with everyone trapped inside. Now, should we initiate a recall? Take the number of vehicles in the field, A, multiply by the probable rate of failure, B, multiply by the average out-of-court settlement, C. A times B times C equals X. If X is less than the cost of a recall, we don't do one.