Logical Reasoning

PT124 · S3 · Q1 At many electronics retail stores

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At many electronics retail stores, the consumer has the option of purchasing product warranties that extend beyond the manufacturer's warranty.

Evidence

Most problems with electronic goods occur within the period covered by the manufacturer's warranty.

Conclusion

Consumers are generally better off not buying extended warranties.

Evaluate

The conclusion compares how well off consumers are who purchase the extended warranty with those who do not. To establish this conclusion is a straight forward calculation. What does it cost to pay for repairs out of pocket that occur after the manufacturer’s warranty expires and what does the extended warranty cost? The consumer is better off going with whichever option is less expensive.

1.

Which one of the following, if true, most strengthens the argument?

  1. Correct

    Problems with electronic goods that

    Why this is right

    This reduces the cost of the repairs that are likely to occur after the manufacturer’s warranty expires and makes it less likely that the extended warranty will save consumers money.

    Skill tested: Strengthen · how this choice captures the argument's function is the move to repeat next time.

    88% picked this

  2. Because problems are so infrequent

    Weakens

    This makes it more likely that the consumer should buy an extended warranty.

    3% picked this

  3. Most of those who buy

    Too Weak

    This is consistent with the conclusion that consumers are generally better off not purchasing extended warranties, since this is only about a segment of consumers.

    5% picked this

  4. Some extended warranties on electronic

    Too Weak

    This doesn’t increase the value of the extended warranty since the product is already covered by a manufacturer’s warranty during the initial period.

    2% picked this

  5. Retail stores sell extended warranties

    Out of Scope

    The reason why retailers sell extended warranties is not relevant to whether extended warranties are generally worthwhile for consumers to purchase.

    2% picked this

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