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In: Finance

Table 2 shows some data related to crime in different areas of England. When answering the...

Table 2 shows some data related to crime in different areas of England. When answering the questions that follow, assume that the rates of offences in each area in the year ending March 2019 are valid indicators of the current annual risks of these offences.

Table 2 Rates of police recorded crime for burglary and bicycle theft for selected areas of England, year ending March 2019

Region Burglary Bicycle Theft
North East 7.1 per thousand of population 1.4 per thousand of population
West Midlands 0.0079 0.0010
South East 0.54% 0.16%
London 1 in 109 of population 1 in 417 of population

Source: adapted from ONS (2019)

Transform the figures in Table 2 into one comparable measure of risk by expressing each probability as a decimal, rounded to four decimal places.

Solutions

Expert Solution

Here We require the values to be converted into comparable form so we can compare them easily:

We want them in form of probablity so we will have to put it in decimals

Now We will convert all of them Region wise

North East

Burglary: 7.1 per thousand of population = 7.1/1000 = 0.0071

(Here we have 7.1 per thousand so we just converted them into decimal and solved it)

Bicycle Theft: 1.4 per thousand of population = 1.4/1000 = 0.0014

West Midlands

Burglary: 0.0079 (Already in form of probablity)

Bicycle Theft: 0.001 (Already in form of probablity)

South East

Burglary: 0.54% 0.54/100 = 0.0054

As we know percentage can be converted into probablity just by dividing it by 100

Bicycle Theft: 0.16% = 0.16/100 = 0.0016

London

Burglary : 1 in 109 of population can be written as 1/109 = 0.00917 =0.0092

Bicycle Theft: 1 in 417 of population = 1/417 = 0.002398 =0.0024

Here we have just converted the words into formula and we get probablity values.


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