Question

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 1

While purchasing the extending warranty for her new laptop, she is required to figure out some questions in order to identify the risk and return. The three questions can be :

a) Will the warranty cover the cost of physical damage?

b) Is the replacement cost lower than the warranty cost?

c) is the laptop worth the extra expense of the warranty?

What is the warranty?

Warranty is the guarantee raised by the vendor to the purchaser regarding the replacement or repairing of any acquired item within the allocated period of time. The general term of warranty is 1 year but it can exceed more than a year depending on the manufacturer.

Analysis of the questions is as follows:

a) Will the warranty cover the cost of physical damage?

As there are varied kinds of warranties associated with every product bought, so it is required to be known by her what type of damages are covered in the warranty which she is going to purchase.

b) Is the replacement cost lower than the warranty cost?

The cost of replacement can be greater than the cost of warranty so she vigilantly checked the prices of both as she needs to get the laptop replaced sometime in the future.

c) Is the laptop worth the extra expense of the warranty?

There are varied kinds of warranties and extra costs attached to the product which helps her in analyzing its quality.

Learn more about the choice of warranty here:

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