A Decision Maker's Worst Option Has an Expected Value of $1,000

Multiple Choice

A decision maker's worst option has an expected value of $1,000, and her best option has an expected value of $3,000. With perfect information, the expected value would be $5,000. The decision maker has discovered a firm that will, for a fee of $1,000, make her position-risk free. How much better off will her firm be if she takes this firm up on its offer?

A) $5,000
B) $4,000
C) $3,000
D) $2,000
E) $1,000