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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. 0.60 b. 0.40 c. 0.45 d. 0.50 e. 0.57
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Option a has a payoff of $10,000 in environment 1 and $20,000 in environment 2. option b has a payof...
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