Mark Has Two Alternatives

Multiple Choice

Mark has two alternatives.There is a 50 percent chance that he will earn $120,000 if he accepts a government contract.If he decides not to accept the contract and instead continues on his present project, he has an 80 percent chance of earning $100,000.If Mark is a perfectly rational decision maker, which of the following statements is TRUE?

A) He will accept the government contract.
B) His expected value of continuing on the present project is $80,000.
C) He will attempt to satisfice.
D) He will ignore economic criteria in making his decision.
E) He will revise his earnings estimate on the government contract to make it more attractive.