Using the tradeoff method if people are indifferent between

Using the trade-off method, if people are indifferent between paying an extra $400 to reduce the probability that they will die by 1/10,000, then they value their life at

Solution

Using the trade-off method, if people are indifferent between paying an extra $400 to reduce the probability that they will die by 1/10,000, then they value their life at $4 million.