Neighboring Insurance

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For similar homes and comparable residents, home insurance for theft has always cost more in Springfield than in Shelbyville. Police studies, however, show that homes owned by Springfield residents are, on average, slightly less likely to be robbed than homes in Shelbyville. Clearly, therefore, insurance companies are making a greater profit on home theft insurance in Springfield than in Shelbyville.

In evaluating the argument, it would be most useful to compare