Final answer:
To quantify potential savings and put a number on improved safety, a cost-benefit analysis is used. The cost per life saved is a commonly used metric by government regulators to evaluate the effectiveness of safety measures.
Step-by-step explanation:
When quantifying potential savings, it is important to consider the cost-benefit analysis.
This involves comparing the costs of implementing a safety measure with the potential benefits or savings it can generate.
For example, government regulators may estimate the cost per life saved to determine if a safety system is justified. They use a threshold, such as $3 million or less, to approve rules.