Option a Has a Payoff of $10,000 in Environment 1

Multiple Choice

Option A has a payoff of $10,000 in environment 1 and $20,000 in environment 2. Option B has a payoff of $5,000 in environment 1 and $27,500 in environment 2. Once the probability of environment 1 exceeds ______, option A becomes the better choice.

A)  .40
B)  .45
C)  .50
D)  .57
E)  .60