Consider the Following to Answer the Question(s) Below

question 2

Essay

Consider the following to answer the question(s) below:
The option to buy extended warranties is commonplace with most electronics purchases. 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.
-Two of the questions asked in the survey of customers are shown below.
• Given the prevalence of identity theft, are you reluctant to provide credit card information online?
• Are you confident that any information you provide online is secure?
a. Are these questions valid (appropriately worded)? Explain.
b. Which question is more neutral? Explain.

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Definitions:

Poverty Line

The minimum level of income deemed adequate in a particular country to live on and meet basic living needs.

Income

The money received, especially on a regular basis, for work or through investments.

College Graduates

Individuals who have completed a degree program at a college or university.

Property Income

Income from property ownership, including rentals, dividends from investments in real estate, and interest on property savings.