If a painter tells you that he would spent 30 on a resperato

If a painter tells you that he would spent $30 on a resperator (but not $31) that protects him from paint fumes that produce a 0.01% chance of killing him? How much cash value would you say that he places on his life?  

Solution

The cash value he places on his life = Expenditure/probability of death = 30/.01%=30*10000=$300,000