BADM 2003W Lecture Notes - Lecture 12: Hormesis, Tap Water, Confidence Interval
4 Apr 2016
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Document Summary
Apple and amazon in the supreme court. Generally to take risks for small benefits. Too much / too little information alter the effects of risk. Almost enough to kill the test animal but not quite. 97. 5% chance the true value is lower. Helpful in small doses but not with bigger doses. Incorrect data could result in taking risks that shouldn"t be taken in the first place. Using best estimate taking uncertainty into account. Assume risk is zero if the dose is zero. Like a wavy s curve with the risk line straight and above the curve. Low doses may be good for you. Only required at low doses as a micronutrient. Zero risk is impossible and costs explode when they near the zero risk. Increases in income lead willingness to pay for safety. Always mb = mc is the optimal level. Consumers are willing to take risks and pay for risk reductions. Opportunity costs are also taken into account.
