The PACED decision-making process can help Eric make an informed decision about whether to repair his existing refrigerator or buy a new one. Let's go through each step:
1. **Problem Definition (P)**:
Eric's four-year-old refrigerator needs repairs, and the warranty has expired. He has received a quote of $250 for the repairs. He's also considering buying a new, similar refrigerator with an eight-year warranty for $950.
2. **Alternatives (A)**:
Eric has two main options:
a) Repair the existing refrigerator for $250.
b) Buy a new refrigerator for $950 with an eight-year warranty.
3. **Criteria (C)**:
Eric needs to establish the criteria he values most to make an informed decision. Some potential criteria include:
- Cost-effectiveness
- Reliability
- Long-term investment
- Immediate need for a functioning refrigerator
4. **Evaluate (E)**:
Eric should evaluate each alternative based on the criteria he's established. For example:
- Repairing the current refrigerator is cost-effective but provides no warranty.
- Buying a new refrigerator is a long-term investment and comes with a warranty but is more expensive upfront.
5. **Decision (D)**:
After evaluating the alternatives, Eric should make a decision based on his criteria. For instance, if he prioritizes cost-effectiveness and isn't concerned about the warranty, he might choose to repair the existing refrigerator. If he values a long-term investment and warranty, he might opt to buy a new one.
Now, Eric should consider his personal preferences and priorities regarding the criteria and make a decision based on what aligns best with his needs and values.