Option A has an expected value of $$2,000,$ a minimum payoff of $-$$$4,000,$ and a maximum payoff of $$18,000.$ Option $B$ has

an expected value of $$2,200,$ a minimum payoff of $-$$$1,000,$ and a maximum payoff of $$6,000.$ Option $C$ has an expected

value of $$1,900,$ a minimum payoff of $$100,$ and a maximum payoff of $$2,000.$ In this situation, a risk$-$averse decision maker

would pay

for his risk aversion, and a risk$-$seeking decision maker would pay

for his risk seeking.

Multiple Choice

$$300,$$$200$

$$2,100,$$$16,000$

$$200$; $$300$

$$400$; $$200$

$$1,100$; $$5,000$