| Article: |
Calculating the True Price of Software | |
| Subject: | Sorry, but I don't fully get your math | |
| Date: | 2005-07-22 01:55:51 | |
| From: | llogiq | |
|
In your first example, you set the estimated first year failure rate for a mac at 8%, but compute a value of $225 for the first-year guarantee, which is about 15% of the computer price tag.
Did you use the overall failure rate of 15% for all computers?
Or is the guarantee worth more than the failure percentage times the price? I would assume it being less, since not all failures are killing the whole machine.
On the other calculation, you completely lost me. (Ok, that's my fault, too. I was too lazy to look up the math. So be it.) I think the article might be more convincing if it included the steps to arrive at your results, at least in a sidebar.
Otherwise good article. Thanks. |
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