Comment Bathtub curve (Score 1) 289
Buying any kind of extended warranty is playing the odds. But here's a good way to think of it.
There are three curves that the manufacturer, when offering an extended warranty, is managing.
The first curve is the probability of a malfunction appearing in the item due to a manufacturing error. This starts high on the left side of the x-axis, descends rather quickly, then is a slow angle off to infinity.
The second "curve" is really a flat line. It represents the chance of a malfunction due to straight "chance."
The third curve starts where the x- axis and y-axis meet, increases relatively slowly, then shoots up rather markedly well along the x-axis.
When you put them together, they take the form of the profile of a bathtub.
Built-in warranties handle the first curve rather well -- so you're already covered there.
Extended warranties tend explicitly not to handle the third curve -- it's too expensive for the manufacturer.
In other words, extended warranties cover the part of the curve that is the lowest chance of a mulfunction/breakdown. This is great for the manufacturer because there is a good chance that the program will be profitable and the cost to the consumer is low enough that people will buy the warranty.
Is it good for you, since you're covering the area when there is the least chance for a malfunction? As with most things, that depends. Is the equipment mission-critical? (I know my laptop is.) Do you head straight into a snot-flying rage when something breaks? (i.e. what is your temperment?) Do you like taking chances (and not buy the warranty)? (temperment, again)
Take all these into account before making the call. I know that for me, I just include it in the cost of the laptop and never look back. The piece of mind is worth it for me. (temperment, again)
There are three curves that the manufacturer, when offering an extended warranty, is managing.
The first curve is the probability of a malfunction appearing in the item due to a manufacturing error. This starts high on the left side of the x-axis, descends rather quickly, then is a slow angle off to infinity.
The second "curve" is really a flat line. It represents the chance of a malfunction due to straight "chance."
The third curve starts where the x- axis and y-axis meet, increases relatively slowly, then shoots up rather markedly well along the x-axis.
When you put them together, they take the form of the profile of a bathtub.
Built-in warranties handle the first curve rather well -- so you're already covered there.
Extended warranties tend explicitly not to handle the third curve -- it's too expensive for the manufacturer.
In other words, extended warranties cover the part of the curve that is the lowest chance of a mulfunction/breakdown. This is great for the manufacturer because there is a good chance that the program will be profitable and the cost to the consumer is low enough that people will buy the warranty.
Is it good for you, since you're covering the area when there is the least chance for a malfunction? As with most things, that depends. Is the equipment mission-critical? (I know my laptop is.) Do you head straight into a snot-flying rage when something breaks? (i.e. what is your temperment?) Do you like taking chances (and not buy the warranty)? (temperment, again)
Take all these into account before making the call. I know that for me, I just include it in the cost of the laptop and never look back. The piece of mind is worth it for me. (temperment, again)
