Dahlia Can Earn $60,000 a Year Working at a Relatively

Multiple Choice

Dahlia can earn $60,000 a year working at a relatively safe job, or $65,000 a year working at a riskier job. The probability of death from working at the relatively safe job is 1/5,000, and the probability of death from working at the riskier job is 1/1,000. Using the compensating differential approach and the above information, what is the value of Dahlia's life?

A) $2 million
B) $2.5 million
C) $6.25 million
D) $25 million