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

3.2 If crimes categorised as burglary and bicycle theft are independent events, what is the chance (expressed in percentage) of being a victim of both crimes next year in Dorset?

3.3 Give two reasons why a particular person in North Wales may in fact be at a lower risk of burglary than the average probability for the region shown in the table.

3.4 Briefly explain in your own words the meaning of 'adverse selection'. Discuss how adverse selection might provide a greater problem for mutual insurance pricing models than individual risk-based pricing for home contents insurance.

Region	Burglary	Bicycle theft
West Yorkshire	4.1 per thousand of population	0.8 per thousand of population
NorthWales	0.19%	0.04%
Bedfordshire	1 in 370 of population	1 in 9090 of population
Dorset	0.0023	0.0015