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The Option to Buy Extended Warranties Is Commonplace with Most

Question 2

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The option to buy extended warranties is commonplace with most electronics purchases. But does the type of purchase affect a consumer's willingness to pay extra for
An extended warranty? Data for 420 consumers who purchased digital cameras and
Laptop computers from a leading electronics retailer are summarized in the table. The
Probability that a consumer does not purchase an extended warranty is The option to buy extended warranties is commonplace with most electronics purchases. But does the type of purchase affect a consumer's willingness to pay extra for An extended warranty? Data for 420 consumers who purchased digital cameras and Laptop computers from a leading electronics retailer are summarized in the table. The Probability that a consumer does not purchase an extended warranty is   A)  .07 B)  .42 C)  .58 D)  .17 E)  .83


A) .07
B) .42
C) .58
D) .17
E) .83

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