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:

Government Regulation

The imposition of rules by government, often to correct market failures or protect citizens' rights and well-being.

Media Outlets

Organizations that disseminate information to the public via various platforms such as television, radio, newspapers, and the internet.

Press Protection

Legal and constitutional guarantees that safeguard the freedom of the press from censorship or undue government influence.

Democracy

A form of government in which power is vested in the people, who rule either directly or through freely elected representatives.