A Risk-Averse Decision Maker Is Trying to Decide Which Alternative

Multiple Choice

A risk-averse decision maker is trying to decide which alternative to choose. The payoff table for the alternatives, given two possible states of nature, is shown below. Assuming that the decision makers risk tolerance (R) is 5, which decision should she choose based on the utility of each outcome? Assume the exponential utility function is applicable.
$$\begin{array} { | l | r | r | } \hline { \text { Alternative } } & \text { High } & { \text { Low } } \\\hline \text { A } & 20 & 5 \\\hline \mathrm { B } & 25 & 11 \\\hline \mathrm { C } & 30 & 15 \\\hline \mathrm { D } & 10 & 12 \\\hline \mathrm { E } & 50 & - 28 \\\hline \text { Prior Probability } & 0.3 & 0.7 \\\hline\end{array}$$

A) Alternative A
B) Alternative B
C) Alternative C
D) Alternative D
E) Alternative E