There is a garbage crisis in North America - too much garbage and no place to put it. As a consequence, the idea of recycling has become quite popular. A waste-management company in a large city is willing to begin recycling newspapers, aluminum cans, and plastic containers. However, it is profitable to do so only if a sufficiently large proportion of households are willing to participate. In this city, 1 million households are potential recyclers. After some analysis it was determined that, for every 1,000 households that participate in the program, the contribution to profit is $500. It was also discovered that fixed costs are $55,000 per year. It is believed that 50,000, 100,000, 200,000, or 300,000 households will participate with probabilities of .5, .3, .1, and .1, respectively. A preliminary survey was performed where 25 households were asked whether they would be willing to be part of this recycling program.
Suppose only 3 of the 25 respond favorably. Incorporate this information into a decision-making process to decide whether the waste-management company should proceed with the recycling venture.