Problem 17 Robert Ragsdale is trying to decide if he should purchase repair and
ID: 386965 • Letter: P
Question
Problem 17 Robert Ragsdale is trying to decide if he should purchase repair and replacement insurance on a new laptop computer that he is planning to purchase. The policy costs $400.00 at the time of purchase, and over the next three years will replace the laptop if it is stolen or repair it if it is broken. EEB Click the icon to view the table that contains the total costs of this decision a. According to maximin decision criteria, the best alternative is cost of S (Enter your response as a whole number) More Info Computer neither Computer is stolen $3,000 $4,800 Computer Alternative Buy the Insurance Do Not Buy the Insurance breaks $3,000 $3,300 breaks nor is stolen $3,000 $2,600 Print Done Enter your answer in the answer box and then click Check Answer. parts Clear All Check Answer MacBookExplanation / Answer
A
Buy the insurance
$3000
Working note:
As per the MaxiMin criteria, the minimum cost for each alternative is selected and out of that, the highest of these minimum cost is selected. Here, minimum cost is $3000 for buy insurance alternative and $2600 with do not buy the insurance alternative. The maximum of these two minimum cost is $3000 that is to be selected with its alternative of buy the insurance.