Checking voltage output is easy. Start the car, pull off the positive cable from the battery and check the voltage from that cable to a ground point. If the engine dies, both brushes are no longer making contact inside the alternator.
If one brush still works, the voltage will be low.
Check your neighbor's car at the battery, with the headlights on, AC running. You should still get 14+ volts across the pos&neg posts.
Did she get ripped off? Probably, unless it was a Mercedes and the bearings in the alternator disappeared. Shops normally replace the entire alternator rather than the regulator ($50-100) or even just the brushes ($10). They make more money that way. And it depends if the alternator needs to come off the replace the voltage regulator/brushes.
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Keeping it running is better than buying new
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