9. Consider a private insurance company offering to insure renters against burglaries. There are two types of renter: careful renters who always lock their doors, and careless renters who never lock their doors. The company places the probabilities of a burglary occurring for the two types at 10%, 70%, respectively. The cash payout in the case of a robbery for both types is $5,000. What is the actuarially fair price it should charge a renter of each type, if the firm has full information? careful renter = careless renter =

10. Suppose the company of the last question offers one policy that charges $500 for complete coverage. Who will buy the insurance? a. Both renters. b. The careless renter. c. The careful renter. d. No one will

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