You are considering buying a three-year warranty for a new air conditioner unit for $350. The warranty will cover the $ replacement cost if the unit breaks downSuppose the probability that the unit breaks down in the three year period is 8%. Based on this information, Should you buy the warranty?

Asales representative from a local radio station is trying to convince the owner of a small fitness club to advertise on her station. the representative says that if the owner begins advertising on the station today, the club's total number of members will grow exponentially each month. she uses the given expression to model the number of club members, in hundreds, after advertising for t months.