Tony BIs Attempting to Start a Landscaping Business

Multiple Choice

Tony B.is attempting to start a landscaping business.He estimates that to break-even,he will need about 140 customers.He believes he will lose approximately $500 per customer for each customer fewer than the 140.At the moment,he believes that there is an 80% probability that he will be able to secure at least 130 customers and that there is a 50/50 chance that demand will be greater than 150 customers.He has several marketing research firms offering (for a price,of course) to conduct a survey that will provide additional information regarding the probability of demand.How much should he be willing to spend if he decides to have a survey made?

A) ≅ $4,000
B) ≅ $3,000
C) ≅ $5,000
D) ≅ $2,700
E) None of the above