document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=40455>Question 40455</A>: <I><SPAN STYLE=\"word-break: break-all;\"> please help and explain<BR>\n" );
document.write( "car thieves steal one automobile out of 400 of a certain type every year in a certain city. What annual net premium shoukd an owner pay for theft insurance in the amount of $16,000 on the certain type of car?\r<BR>\n" );
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document.write( "I dont even understand how you would know what premiums should be????    </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #25865 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=25865\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> car thieves steal one automobile out of 400 of a certain type every year in a certain city. What annual net premium shoukd an owner pay for theft insurance in the amount of $16,000 on the certain type of car?\r<BR>\n" );
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document.write( "Probability of having your \"certain type of car\" stolen is 1/400.<BR>\n" );
document.write( "If the iinsurance company wants to break even it should change <BR>\n" );
document.write( "(1/400)(16000)=$40 per premium per year.<BR>\n" );
document.write( "They don't want to break even so they must charge more that $40 per premium.<BR>\n" );
document.write( "Cheers,<BR>\n" );
document.write( "Stan H. </SPAN>\n" );
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