The direct cost of driving (fuel, oil, wear and tear) is about $0.25/mi.

Question

The direct cost of driving (fuel, oil, wear and tear) is about $0.25/mi. A round-trip airplane ticket for the 1000-mile trip costs $700. By flying rather than driving, how much money is spent to save a life? The engineer places no value on his time because he is retired, but he does place a $7 million value on his life. Is the extra cost of the airplane ticket worth it to the retired engineer.

 

Well, I been stuck on this question for hours and don't know what it is asking.....

Answer 1

Direct cost of driving = $.25*1,000 = $250.00

 

 Cost driving        $700.00

-Cost of driving  -  250.00

                          $450.00 Extra cost of the airplane ticket

 

There are two questions asked in this problem:

1) By flying rather than, how much money is spent to save a life?

    Since the problem clearly states that the cost of flying is $700.00, the cost of flying rather than driving is

    $700.00. No calculation is necessary.

 

2) Is the extra cost of the airplane ticket worth it to the engineer?

    The extra cost of the airplane ticket ($450.00) is far less than the $7,000,000.00 value the engineer places on his

    life.  Therefore, the extra cost of the airplane ticket  is worth it to the engineer.