Four years ago, Victor Consuelo purchased a very reliable automobile (as rated by a reputable consumer advocacy publication). His warranty has just expired, but the manufacturer has just offered him a 5-year, bumper-to-bumper warranty extension. The warranty costs $4,500. Consuelo constructs the following probability distribution with respect to anticipated costs if he chooses not to purchase the extended warranty.

Cost (in $)	Probability
1,200	0.21
2,500	0.41
5,200	0.21
9,700	0.17

a.	Calculate Victors expected cost.

Expected cost: $__________

b.	Given your answer in part (a), should Victor purchase the extended warranty? (Assume risk neutrality.)
	Yes or No ?