Of the following, which factor or factors would make it more likely that buying an extended warranty is a good idea?

Question

I. The extended warranty overlaps with the manufacturer’s warranty.
II. The product has a high probability of needing repair in the next few years.
III. The product is a major purchase that you are unlikely to soon replace.
a.
I and III
b.
II only
c.
II and III
d.
I, II, and III

Answer 1

To determine which factors would make it more likely that buying an extended warranty is a good idea, let's evaluate each option:

I. The extended warranty overlaps with the manufacturer’s warranty.

• This may be less beneficial because any issues covered under the manufacturer’s warranty would already be addressed without needing the extended warranty during that time.

II. The product has a high probability of needing repair in the next few years.

• If the product is likely to require repairs, an extended warranty would provide peace of mind and financial protection, making it a good idea.

III. The product is a major purchase that you are unlikely to soon replace.

• If the product is a significant investment and you plan to keep it for a long time, an extended warranty can be valuable in protecting that investment.

Given this evaluation, the best options that suggest an extended warranty would be beneficial are II and III.

Thus, the correct answer is: c. II and III.