If an insurance company will insure against cell phone theft by charging a premium based on the likelihood of the phone being stolen multiplied by the cost to replace the phone [i.e., Probability of a phone being stolen * Cost to replace the phone]. Using this formula for risk, how much should the insurance company charge a customer to insure a phone costing $1,000 if statistics show that one in every five cell phones in the Bahamas gets stolen? NOTE: Please explain your mathematical calculations in providing your answer.