Both Nadia and Samantha are applying to insure their car against theft. Nadia lives in a secure neighborhood, where the probability of theft is 10%. Samantha lives in a lesser secure neighborhood where the probability of theft is 25%. Both Nadia and Samantha own cars worth $10,000, and are willing to pay $100 over expected loss for insurance. Suppose the insurance company cannot tell them apart but expects them to be different values and charges them an average premium of $1850. Who is more likely to buy this insurance? a. Samantha b. None of them c. Nadia d. Both of them

a. Samantha

Explanation:

Samantha is likely to buy insurance because she lives in a lesser secure area than Nadia. She has higher probability of theft which is 25%. The probability of theft to Nadia's car is lower which is 10%. Samantha is likely to buy insurance for her car because her car cost $10,000 and she is already willing to pay $100 of expected loss for insurance. Buying insurance will secure Samantha from theft or likely loss of car.

answer: a. the kind of population living in your neighbourhood.

the census explorer data tool by the us census bureau allows the user to zoom in on any neighbourhood within the united states and find the kind of people residing in that by race and age.  

the tool needs to needs to be used twice – once in order to find what type of people reside in a neighbourhood, and then to see the age groups of the people in the same neighbourhood.