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Help me pleaseeeeeeeeee, much appreciated!!!!!!!!!!

Help me pleaseeeeeeeeee, much appreciated!!!!!!!!!!-example-1
User RyanFrost
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1 Answer

10 votes

Explanation:

that is quite a lot of failing TVs.

if 5% are failing, this means you have a "chance" of 5/100 = 1/20 that your TV is among them.

that means the expected costs for replacement in the next 3 years are

1750 × 1/20 = 175/2 = $87.50

minus the $200 replacement plan the expected value is of course negative :

87.5 - 200 = -$112.50

and if your TV breaks after more than 3 years, the expected value is actually -1750 - 200 = -$1,950

which is the principle of replacement plans, and why I never buy one.

but sure, for the 5% with broken TVs this pays off big time (it is kind of a lottery).

User Rothens
by
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