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

Total workers = 1000

Payment to workers = 1000*1000 = 1000000

Odds of dying = 1000*1% = 10

Life equals = 1000000/10 = $100000

For 2000 workers,

Life equals = 2000000/20 = $100000

For 3000 workers,

Life Equals = 3000000/30 = $300000

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