ECO 5353-701 Name: Law & Economics Dr. Reynolds Number: PROBLEM SET #7 Your task is to analyze the decision made by a criminal, given the following information: Annual legal earnings = $ 18,000 Value of property stolen = $5,000 Probability of arrest (see below) Probability of conviction (see below) Length of sentence = 5 years (no parole) Look up the clearance rate for your assigned property crime (see below) on the www.fbi.gov website. Use the national data (all agencies) for clearance rates. Print out just the page with the information you use. Attach the page and circle the data Last name begins with the letter: use data for: A through F robbery G through N burglary 0 through R Motor vehicle theft S through Z larceny Look up the conviction rate for your type of offense in Felony Defendants in Large Urban Counties. Use the national data (all agencies) for clearance rates. Print out just the page with the informatiori you use. Attach the page and circle the data. 1. What is the frequency of arrest for your offense? 2. What is the conviction rate for your offense? 3. What is the net expected value of the offense (expected gain - expected loss)