The Option to Buy Extended Warranties Is Commonplace with Most

question 17

Multiple Choice

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 big screen TVs and laptop computers from a leading electronics retailer are summarized in the table.Which of the following statement is true?

• A)The decision to purchase an extended warranty and type of electronics (big screen TV or laptop computer) purchased are independent.
• B)The decision to purchase an extended warranty and type of electronics (big screen TV or laptop computer) purchased are mutually exclusive.
• C)The decision to purchase an extended warranty and type of electronics (big screen TV or laptop computer) purchased are disjoint events.
• D)The decision to purchase an extended warranty and type of electronics (big screen TV or laptop computer) purchased are not independent.
• E)The decision to purchase an extended warranty and type of electronics (big screen TV or laptop computer) purchased are related.

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Definitions:

Communication Systems

Tools, processes, and technologies used to facilitate the exchange of information among people and devices.

Geographical Location

The specific physical place where a company is situated, which can significantly impact its operations and market reach.

Just-In-Time (JIT)

An inventory management strategy where materials and products are produced or acquired only as needed for immediate use, reducing waste and inventory costs.

Holding Inventory

The process of keeping stock of goods or materials on hand to protect against fluctuations in demand or supply.