Determining the average payoff for each alternative and choosing the one with the best payoff is the approach called:
A)maximax
B)maximin
C)Laplace
D)minimax regret
E)expected monetary value

Question

Quizplus · Accepted Answer

The Laplace criterion involves calculating the average payoff for each alternative and selecting the one with the highest average as the best option. This approach assumes that all states of nature are equally likely.

Determining the Average Payoff for Each Alternative and Choosing the One