Author Question: Explain why it is important to check the length of an extended warranty carefully before deciding ... (Read 54 times)

Deast7027 · **on:** Jul 24, 2018

Explain why it is important to check the length of an extended warranty carefully before deciding how much (and if) you are willing to pay for it.

Question 2

Suppose a sales brochure tries to talk you into joining an auto club by telling you to ...picture a situation where you are alone on a country road at night in the dark and your lights go out where will you turn for help? How does this distort your perception of risk?

recede · **Reply #1 on:** Jul 24, 2018

Answer to Question 1

MANUFACTURERS SET IT UP SO THAT IT IS EXTREMELY UNLIKELY THAT A MAJOR PROBLEM WILL OCCUR DURING THE TIME PERIOD OF THE WARRANTY.

Answer to Question 2

THE CHANCES OF THAT HAPPENING ARE VERY SMALL, AND THEY DON'T TELL YOU THAT. THEY PUT YOU IN THE SCENARIO, ASSUMING THAT IT ALREADY HAPPENED. THIS IS AN EXAMPLE OF USING DETAILED IMAGINATION TO DISTORT YOUR JUDGMENT.