Option a Has a Payoff of $10,000 in Environment 1

question 182

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)0.33
• B)0.67
• C)0.45
• D)0.50
• E)0.55

---

Definitions:

Accounts Receivable Clerk

An employee who manages incoming payments, keeps records of money owed by customers, and ensures accurate and up-to-date accounts receivable.

Replenishment

The process of refilling stock or supplies in a business to ensure adequate levels are maintained.

Valid Receipts

Official documents or records that acknowledge the receipt of goods, services, or payments and serve as proof of transactions.

Auxiliary Petty Cash Record

An ancillary log kept to track petty cash transactions separately from the main cash records for better management and reconciliation.