Assume That Odds of a New Computer Requiring Any Type

question 12

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 of any computer service call is only $50.However,Karen pays $200 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

---

Definitions:

Increased Number

A situation where the quantity or volume of something grows or expands.

Negotiators

Individuals or parties involved in discussions aimed at reaching an agreement.

Multiparty Negotiation

A negotiation process involving more than two parties or groups with distinct interests and objectives.

Interteam Negotiations

Negotiations that occur between two or more groups or teams, each representing collective interests or objectives.