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You are the president of a small company that manufactures space heaters. Your chief engineer informs you that the latest batch of space heaters has failed to meet standards and they cannot be sold in the U.S. If your company has to scrap the heaters, it will result in bankruptcy and your 60 employees and yourself will lose your jobs. Your engineer informs you there is less than a 1 in 1000 chance of the heaters exploding and quite possibly none of them will fail.

Your sales manager informs you that he has found a third world country that is desperate for heaters as it's population is freezing. You can sell the heaters at your cost and save your company. Do you sell the heaters or not. Why?

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