Option A has a payoff of $10,000 in environment 1 and $20,000 in environment 2. Option B has a payoff of $12,500 in environment 1 and $17,500 in environment 2. Once the probability of environment 2 exceeds ______, option A becomes the better choice.
A) .33
B) .67
C) .45
D) .50
E) .55

Question

Option A has a payoff of $10,000 in environment 1 and $20,000 in environment 2. Option B has a payoff of $12,500 in environment 1 and $17,500 in environment 2. Once the probability of environment 2 exceeds ______, option A becomes the better choice.
A) .33
B) .67
C) .45
D) .50
E) .55

Quizplus · Accepted Answer

The Answer of Option A has a payoff of $10,000 in environment 1 and $20,000 in environment 2. Option B has a payoff of $12,500 in environment 1 and $17,500 in environment 2. Once the probability of environment 2 exceeds ______, option A becomes the better choice.
A) .33
B) .67
C) .45
D) .50
E) .55

Option a Has a Payoff of $10,000 in Environment 1