Mrs. james is planning to purchase one of two household appliance contracts. company a offers a repair contract that covers an unlimited number of repairs for $12.99 per month. company b charges $75 per repair but does not charge a monthly fee. the table lists the probability, based on customer reviews, of the number of repairs required over one year.

number of repairs 0 1 2 3
probability 0.25 0.32 0.29 0.14

the offer from is more cost-effective than the offer from .