When the Lines for Two Alternatives Cross on a Strategy

Multiple Choice

When the lines for two alternatives cross on a strategy region chart,this shows:

A) A change in which decision alternative is optimal
B) The point at which a decision was made
C) The point where the rate of change in expected value is zero
D) Resolution of the uncertainty about the input variable
E) None of these options
An investor has $25,000 in assets and faces a difficult choice between two investments.If he invests in the first opportunity there is a 70% chance that he will increase his assets by $75,000 and a 30% chance that he will increase his assets by $20,000.If he invests in the second option there is a 40% chance that he will increase his assets by $150,000 and a 60% chance that he will increase his assets by $5,000.