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 $12,500 in environment 1 and $17,500 in environment 2. Once the probability of environment 2 exceeds ______, option A becomes the better choice.

A)  .33
B)  .67
C)  .45
D)  .50
E)  .55