B. You own a car worth $40,000 and are planning to buy an insurance policy for your car. If you drive the car carefully, a moderate road accident completely destroys the car. This type of road accident happens about once every 5 years. However, if you take some preventive measures - taking a driving course, installing snow tires etc. -- the accident will have to be a major one to destroy your car, and such major accident happens only about once every 20 years. What would be the annual premium for a car insurance policy that offers full insurance? For a policy that pays only 75% of the car value, what are your expected costs with and without the preventive measures? Do the different policies provide an incentive to be safer (i.e., taking preventive measures)? (2.5 points)