Question 22 • GA-GSE Personal Finance and Economics
Emma has decided that she needs to assess the risk and return of buying an extended warranty for her new laptop for school. Which of these practical questions should she ask herself to assess the risk? Select three options.Will the warranty cover the cost of any physical damage?Should I buy a different model?Would it be better for me to buy a desktop computer?Is the cost of replacement less than the cost of the warranty?Is the laptop worth the extra expense of the warranty?
Answer
W
Will the warranty cover the cost of any physical damage?
S
Should I buy a different model?
W
Would it be better for me to buy a desktop computer?
I
Is the cost of replacement less than the cost of the warranty?
I
Is the laptop worth the extra expense of the warranty?
Explanation
To assess the warranty’s risk and return, Emma should check what kinds of damage it covers and compare the possible replacement cost with the warranty price. She should also consider whether the laptop’s value makes the extra warranty expense worthwhile. Questions about choosing a different model or buying a desktop are about selecting a computer, not assessing the warranty.
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