Question

2. In United States airspace, the average number of commercial aircraft in the sky on an average morning is 4000 There are another 16,000 planes on the ground. Aerospace company Rockwell-Collins developed what it calls a 'digital parachute,' a panic-button technology that will land any plane at the closest airport, no matter what the weather or geography, and without the help of a pilot. The technology could be applied where a pilot is no longer capable of flying the plane, or is panicked and confused about what to do in an emergency. Assume the cost of retrofitting 20,000 commercial airplanes is $55,000 each and the plane stays in service for 15 years. The technology could save an estimated average of 40 lives per year. a) Use a Benefit/Cost analysis to find the dollar value for a human life that would make installing this technology worthwhile. b) Google 'value of a human life. Give two additional estimates for the value of a life from your research (with the source website)

Answer 1

Average number of commercial as craft in the sky on an average number of 40000. B = 30 (4,000,000) = $ 120 million per year C = 20,000 (100,000) (A/1, 10 % 15) = 2 billion (0.13147) = $ 262.940 million per year B/C = 120 million/262.940 million = 0.46