A Study Shows That Widening a Road Shoulder by 0

Multiple Choice

A study shows that widening a road shoulder by 0.3 metres results in a 10% decrease in fatal traffic accidents. Trying to improve the road safety of the Provincial part of a federal highway, a Provincial Department of Transportation widened the highway shoulders by 0.9 metres. Based on the data provided by the Transportation Safety Board (1997) in the table below, calculate the fatal accident cost savings that resulted from this project. Assume that the Provincial Department of Transportation used to record 10 fatalities on average per year on this part of the highway.

A) $1.56 million
B) $3.12 million
C) $4.68 million
D) $6.24 million
E) $7.80 million