Suppose your client asked you to assume a VSL of $2 million. Now suppose you are studying the risk associated with a terrorist attack against people in a public space. You estimate that if successful, somewhere between 5 and 10 people will die. Consequently, in dollar terms, you estimate that the loss will be between $10 and $20 million. Is it appropriate to express loss of life in terms of dollars in this manner? Why or why not?
No,it's not appropriate to express the loss of life interms of
dolloars in this manner
because,here the declaminer justmultiply the lower and upper limit
of the dieing by $2 and
claimed the expected loss.buut it may happen that terrror attackina
public places comes 8(say)
people die and rest of the people will die
in some another reasons(say accident,heart attack or some
other).
so in there cases the estimated loss will become meaning less so
it's not so much appropriate.
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