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24 December, 02:19

You are thinking of hiring a security monitoring service. You can pay a flat rate of $100 per month or pay $200 per incident. You expect to average one incident per three months. Which plan will be cheaper for you?

a) Flat rate plan

b) Per incident plan

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  1. 24 December, 06:00
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    Answer: b) Per incident plan is cheaper.

    Step-by-step explanation: We are given according to first case:

    Rate per month = $100.

    Second case:

    Rate per incident = $200.

    According to rate per month plan, the total amount after 3 months would be

    = 3*$100 = $300.

    And according to per incident plan total amount after 3 months would be $200 because it is said that there expect to average one incident per three months.

    So, total amount according to second plan is just $200.

    So, we can see than $200 is obviously less than $300.

    Therefore,

    b) Per incident plan is cheaper.
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