As a birthday gift you are mailing a new personal digital as

As a birthday gift, you are mailing a new personal digital assistant (PDA) to your cousin in Toledo. The PDA cost $432. There is a 6 percent chance it will be lost or damaged in the mail. Is it worth $4 to insure the mailing? No Yes

Since the chance of the PDA getting damaged or lost in mail is too low (6%), it is not required to insure the mail.

If the chance had been higher, insuring had been a better choice.