A business owner is trying to decide whether to buy, rent, or lease office space in an environment where the states of nature describe business conditions as either brisk or slow. The payoffs are in the above nearby table. If the probability of brisk business is .40 and for slow business is .60, and if the highest and lowest payoffs have utility 10 and 0, respectively, and if the decision maker is risk averse, then a utility value for the payoff 70 consistent with risk aversion is 5.

A. True

B. False

	Business condition brisk	Business condition slow
Buy	90	-10 (minus 10)
Rent	70	40
Lease	60	55