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QUESTION

You have a payoff table with two decision alternatives (options) and two states of nature (environments). Option A has payoff $10,000 in environment...

You have a payoff table with two decision alternatives (options) and two states of nature (environments). Option A has payoff $10,000 in environment 1 and $20,000 in environment 2.

Option B has payoff $12,500 in environment 1 and $17,500 in environment 2. When the probability of environment 2 exceeds ______, option A becomes the higher expected payoff choice.

Answer: .50

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