A car dealership offers a prepaid maintenance plan for their new vehicles that covers all scheduled maintenance
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A car dealership offers a prepaid maintenance plan for their new vehicles that covers all scheduled maintenance for the first three years. The cost of the plan is $499. Jennifer has just purchased a new vehicle and has determined that the scheduled maintenance costs for the first three years will be $650. But she believes there is only an 80 percent chance that she will own this vehicle for three years. Based on the concept of expected value, should Jennifer buy the prepaid maintenance plan?
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Related Book For
Essential Statistics In Business And Economics
ISBN: 9781260239508
3rd Edition
Authors: David Doane, Lori Seward
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