Mathalicious: AppleCare a Day

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?


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Algebra & Pre-Algebra

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