A company is considering the introduction of a new product to its existing product range. It has defined two levels of sales as 'high' and 'low' on which to base its decision and has estimated the chances that each market level will occur, together with their costs and consequent profits or losses. This information is summarised below:

The company's marketing manager suggests a market research survey be undertaken to provide further information on which to base the decision. On past experience with a certain market research organisation, the marketing manager assesses its ability to give good information in the light of subsequent actual sales achievements as follows:

Given that to undertake the market research survey will cost Rs 20,000, determine whether or not there is a case for employing the market research organisation.

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Course of Action States of Nature Probability Market Product Do Not Market Product (Rs '000) (Rs '000) High sales Low sales 0.3 0.7 150 -40 0