Question: Problem 3: Car Thefts (3 points) The US city with the highest rate of car theft is Albuquerque, New Mexico. A recent study1 estimated the

Problem 3: Car Thefts (3 points) The US city with the highest rate of car theft is Albuquerque, New Mexico. A recent study1 estimated the probabiity of a randomly chosen car in Albuquerque being stolen in any given year to be 0.00677. Suppose you take a position in McKinsey's new Albuquerque office. a. Make the following assumption: in any given year in Albuquerque, any car has a 0.677% chance of being stolen, independent of whether it is stolen in any other year. In that case, if you work in Albuquerque for three years, what is the probability that your car will never be stolen in that time? b. Under the same assumption, suppose you become senior partner, and end up living in Albuquerque for 35 years. What is the probability your car is never stolen in that time? c. Do you think this assumption is justied in this problem? Briefly expiain why or why not

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