Pro-Tect Insurance Company has recently been paying out more on car-theft claims than it expected. Cars with special antitheft devices or alarm systems are much less likely to be stolen than are other cars. Consequently Pro-Tect, as part of an effort to reduce its annual payouts, will offer a discount to holders of car-theft policies if their cars have antitheft devices or alarm systems.
Which of the following, if true, provides the strongest indication that the plan is likely to achieve its goal?
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AThe decrease in the risk of car theft conferred by having a car alarm is greatest when only a few cars have such alarms.
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BThe number of policyholders who have filed a claim in the past year is higher for Pro-Tect than for other insurance companies.
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CIn one or two years, the discount that Pro-Tect is offering will amount to more than the cost of buying certain highly effective antitheft devices.
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DCurrently, Pro-Tect cannot legally raise the premiums it charges for a given amount of insurance against car theft.
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EThe amount Pro-Tect has been paying out on car-theft claims has been greater for some models of car than for others.
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