There are two types of vans on the market, the Cheap and the Save
There are two types of vans on the market, the Cheap and the Save. The only difference between the two is that over their lifetime, 1 in 10 Cheaps is expected to result in an accident, as compared to 1 in 25 Saves. Further, 1 in 1,000 Cheaps is expected to result in a fatal accident, as compared to only 1 in 5,000 Saves. The Cheap sells for $125,000 while the Save sells for $137,000. At these prices, 2,000 of each model are purchased each year. What is the statistical value drivers place on avoiding an accident? What is the value of a statistical life of a driver?
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