Analyze the Following Decision Tree

question 19

Multiple Choice

Analyze the following decision tree. After determining the missing probabilities, identify which alternative (Option 1 or Option 2) has the higher expected payoff. What is the expected payoff?

• A) Option 1, with an expected payoff of less than $25
• B) Option 1, with an expected payoff of $25 or more
• C) Option 2, with an expected payoff of less than $25
• D) Option 2, with an expected payoff of $25 or more