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You are trying to decide where to go on vaation. country A, your riak of death is 1 in 10,000, ad youd pay $5,000 to go on that vacation. In country B, your risk of death is 1 in 50,000, and youd pay $6,000 to go on that vacation. Supposing that youre indifferent between these two destinations, except for the differential risk of death, what does your willingness to pay for these vacations tell you about how much you value your life?

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Calculalion o value of Lifo The risk ofdeath in Coundy A 50,0 o0 500o- 6ooo to change In he event . you oe Pla cing value of

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