In our everyday life, we often have to make decisions with uncertain consequences. Assume that you are a hotel manager and you are considering four projects that yield different payoffs, depending upon whether there is an economic boom or a recession. The potential payoffs and corresponding payoffs are summarized in the following table. Project A Boom (50%) $20 . B -$10 C D $30 $50 The variance in the returns of project C is 1,600. 0. 225. 900 Recession (50%) -$10 $20 -$30 $50