Consider the Following Payoff Table

Multiple Choice

Consider the following payoff table. Based upon these probabilities, a person would select Alternative 3.Suppose there is concern about the accuracy of these probabilities.A few of the analysts feel that the likelihood of State 1 is higher and that the likelihood of State 2 is much lower.If the likelihood of State 2 is reduced at the expense of State 1, how much lower can State 2's likelihood fall before Alternative 3 is no longer optimal?

A) 0.05
B) 0.06
C) 0.07
D) 0.08