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A customer support team is building an AI agent that handles refund calculations. A customer requests a refund for a $200 item purchased 45 days ago. The store policy allows full refunds within 30 days and 50% refunds between 31-60 days. The agent needs to reason through these rules step by step to calculate the correct refund amount before responding. What prompting technique enables this step-by-step reasoning?

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intermediate 25 min

Chain of Thought

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'Shirt costs $25 with 20% off then 15% off sale price. Final price?' Model answers $16.25 (incorrect). How would CoT help?

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When might CoT reduce performance?

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