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Scenario 6.2 Use the Following to Answer the Questions

question 161

Multiple Choice

Scenario 6.2
Use the following to answer the questions.
Both the Racer and the Strider were very popular choices for family vans. Racer noticed that the majority of its customers were families with 3 or more children, and so they developed commercials that featured larger families. They also produced commercials that featured Hispanic-looking actors and for some markets, in Spanish. Alicia Desario and her husband were currently shopping for a van for their family. As Alicia listened to an advertisement on the television about the Strider, she noticed that the Strider cost about $27,000 and had gas mileage of about 17 mpg. She recalled an earlier ad for the Racer, which also cost about $27,000, but had gas mileage of about 21 mpg. She also liked the way the family was portrayed in the Racer ad, showing the children in the back seats having plenty of room, watching the DVD players, and having their own sound controls. When she spoke to Carlos, her husband, about how much she liked the Racer van, he replied that it had too low of gas mileage at only 16 mpg.
Since Alicia didn't agree with that number, he produced a magazine ad that supported his claim of the 16 mpg for the Racer. Alicia couldn't believe that she had made such an error in hearing what the gas mileage was for the Racer and the Strider.
-Refer to Scenario 6.2. The fact that Alicia had remembered the gas mileage of the Racer incorrectly is most likely an example of:

Definitions:

Product Warranty Expense

The cost associated with repairing or replacing products under warranty, recognized by companies to cover future warranty claims.

Warranty Repairs

Services offered for free by a manufacturer or seller to correct defects or malfunctions within a certain period after purchase.

Warranty Expense

Costs that a company anticipates or incurs when repairing or replacing products under warranty to meet its customers' expectations or contractual obligations.

Installment Note

A debt instrument that requires a series of periodic payments, typically consisting of both principal and interest.