Question: You have a decision problem where you are asked to choose between two decision alternatives. Decision alternative 1 can result in a payoff of $20,000

You have a decision problem where you are asked to choose between two decision alternatives. Decision alternative 1 can result in a payoff of $20,000 with probability 0.1 or a loss $5,000 with probability 0.9. Decision alternative 2 results in a payoff $2,000 with certainty (probability =1). If you use the pessimistic approach, which decision alternative would you prefer?

		Not enough information
		Decision Alternative #2
		Indifferent between Decision Alternatives #1 and #2
		Decision Alternative #1

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