Should you ever buy an extended warranty?

Is it ever a good idea to buy an extended product warranty? In this lesson students use percents to explore the **expected value** of AppleCare, i.e. how much is AppleCare actually *worth*, and how much does it cost?

This expected value depends on two factors: the probability that the device will break and the cost to replace it. The higher the probability that a product will fail, and the more expensive it is, the more valuable a warranty will be. So what does the probability of breaking have to be to justify purchasing AppleCare…and are warranties ever a good idea?

- Understand that expected value offers consumers a way to quantify the value of a product warranty
- Given price and probability of failure, calculate the expected value of AppleCare for various devices
- Consider variables that vary directly and inversely (although use of that vocab is optional)
- Examine how terms and conditions affect the expected value of a product warranty
- Given the price of a device and its warranty, determine the probability of failure required to justify AppleCare

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