Assume That Odds of a New Computer Requiring Any Type

question 138

Multiple Choice

Assume that odds of a new computer requiring any type of service in the first two years are less than 1 in 10 000, and the average cost any computer service calls is only $120. However, Karen pays $300 for a two-year service contract on her new computer. She explains that her peace of mind is well worth the cost of the contract. What is Karen using to make her decision to purchase the service agreement, in this case?

• A)noncompensatory factors
• B)subjective probability
• C)expected value
• D)subjective utility

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Definitions:

Unskilled Crafts

Jobs or occupations that do not require a specific set of skills or extended training to perform.

AFL

The American Federation of Labor, a national federation of labor unions in the United States, established to advocate for improved wages, working conditions, and rights of workers.

Great Uprising

A significant event or series of events marking a massive demonstration, often referring to movements or revolutions by workers or oppressed groups.

Wage Increases

Adjustments or rises in the pay rate of employees, typically resulting from negotiations, performance evaluations, or changes in the cost of living.