You Are Evaluating Investment Alternatives for a Ski Resort If You Use the EMV Criterion and You Decide Investment

Multiple Choice

You are evaluating investment alternatives for a ski resort.There are four alternative investments and their payoffs (in $10,000s) are shown in the following table, depending on the snow conditions for the next season. $\begin{array}{r}\text { Snow Conditions }\\\begin{array}{ccc}\text { Investment } & \text { Good } & \text { Bad } \\d_{1} & 3 & 1 \\d_{2} & 8 & 0 \\d_{3} & 12 & -4 \\d_{4} & 18 & -12\end{array}\end{array}$ If you use the EMV criterion and you decide investment d₂, then the probability that the snow conditions are good is ______.

A) more than 0.5
B) more than 0.17
C) more than 0.25 and less than 0.67
D) less than 0.17 or more than 0.5
E) more than 0.17 and less than 0.5