Final answer:
To determine which car lease option is the most cost-effective, Beverly needs to consider her monthly payments and potential costs for exceeding the mileage allowance. A calculation that includes the monthly costs and estimated excess mileage costs, weighted by the probabilities of driving certain mileages, will guide her decision.
Step-by-step explanation:
When considering a vehicle lease, several factors such as monthly cost, mileage allowance, and the cost per excess mile need to be deliberated. Leasing a vehicle often presents a smaller down payment and lower monthly payments than buying outright, but excess mileage can incur substantial costs. In an attempt to understand the long-term costs associated with different lease options, one must look at the estimated monthly payments over the lease term and the potential additional charges for exceeding the allotted mileage. To calculate the most cost-effective option, it is necessary to estimate the total number of miles that will be driven and to weigh the costs of potential overage against the higher monthly payments of leases with more generous mileage allowances. If Beverly has different probabilities for driving certain mileages per year, she must perform a weighted calculation to estimate her expected total cost for each lease option, including both the fixed monthly payments and the variable costs of excess mileage, if any.