Insurance industry records show the Cadillac Escalade SUV has the highest theft

Question

Insurance industry records show the Cadillac Escalade SUV has the highest theft rate of all cars in terms of the number of thefts per thousand vehicles. But in the same records, if you just look at the total number of thefts, more Toyota Camerys are stolen each year than any other car -- including Escaldes. The 1989 Camry, in particular, is the one most often stolen.

A) How can you explain the difference here?

B) If you are considering buying either a Camry or an Escalade, which car would be more likely to get stolen?

Explanation / Answer

(A)

The difference here is that SUV has the highest theft rate in terms of the number of SUV's that get stolen per thousand SUV's sold to the customers. Suppose that theft rate is 50, which means for every 1000 SUV's sold, 50 of them get stolen.

Camry has a greater value for total number of thefts, and not the theft rate. This means that more Camrys get stolen than SUV's, because many more Camrys are sold as compared to the SUV's

(B)

An Escalade will be more likely to get stolen since it is given that it has the highest theft rate.

Hope this helps !

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