S -Consider Figure 13.1, Which Represents an Optimistic State of Nature

Multiple Choice

s
-Consider Figure 13.1, which represents an optimistic state of nature and Figure 13.2, which represents a pessimistic state of nature. Suppose that there is a 10 percent probability of an optimistic state of nature and a 90 percent probability of a pessimistic state of nature will prevail. The actual payoffs to both players in this game are:
I. (70, 70) .
II. (80, 80) .
III. (90, 90) .
IV. (100, 100) .
Which of the following is the correct answer?

A) I or II.
B) II or III.
C) III or IV.
D) I or III.
E) I or IV.