Determining the average payoff for each alternative and choosing the alternative with the highest average is the approach called:
A)minimin.
B)maximin.
C)maximax.
D)minimax regret.
E)Laplace.

Question

Quizplus · Accepted Answer

The Laplace criterion involves calculating the average payoff for each alternative and selecting the alternative with the highest average payoff. This approach does not focus on pessimism or optimism but rather on treating all states of nature as equally probable.

Determining the Average Payoff for Each Alternative and Choosing the Alternative