A Cell Phone Company Offers a Simple Extended Warranty Plan

question 52

Essay

A cell phone company offers a simple extended warranty plan. If your phone is damaged, they will repair it for up to $50. If
you lose or destroy your phone, they will give you a $200 voucher towards a new phone. The company believes that 5% of
customers will need the replacement voucher and 10% will request a repair.
-Is the $25 warranty a wise purchase for you? Given that you will probably buy dozens of
devices over the next decade, are these types of warranties a wise purchase for you?

---

Definitions:

Jewish Grandparent

Refers to a grandparent of Jewish heritage, emphasizing cultural or religious identity within a familial context.

Formal Organization

An organized group of people with a fixed structure and rules designed to achieve specific goals, often marked by a clear hierarchy and division of labor.

Medieval Knights

Warriors of the medieval period, typically of noble birth, who were trained for combat, and bound by codes of chivalry and honor.

Reference Group

A social group that an individual uses as a standard for evaluating themselves and their behavior, influencing their attitudes and actions.