Assume That Odds of a New Computer Requiring Any Type

Multiple Choice

Assume that odds of a new computer requiring any type of service in the first two years are less than 1 in 10,000,and the average cost of any computer service calls is only $120.However,Karen pays $300 for a 2-year service contract on her new computer.She explains that her peace of mind is well worth the cost of the contract.In this case,Karen's decision to purchase the service agreement appears to be based primarily on

A) expected value.
B) subjective utility.
C) subjective probability.
D) noncompensatory factors.