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Lethbridge is considering replacing its fleet of gasoline - powered automobiles with electric cars. The manufacturer of the electric cars claims that this municipality will

Lethbridge is considering replacing its fleet of gasoline-powered automobiles with electric cars. The manufacturer of the electric cars claims that this municipality will experience significant cost savings over the life of the fleet if it chooses to pursue the conversion. If the manufacturer is correct, the city of Lethbridge will save about $1.5 million dollars. If the new technology employed within the electric cars is faulty, as some critics suggest, the conversion to electric cars will cost the city $850,000. A third possibility is that less serious problems will arise, and the city will break even with the conversion. A consultant hired by the city estimates that the probabilities of these three outcomes are 0.33,0.28 and 0.39, respectively.

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