The minimax regret criterion minimizes the maximum opportunity loss within each alternative.

Question

Quizplus · Accepted Answer

The statement is true. The minimax regret criterion is a decision-making technique that aims to minimize the maximum regret or opportunity loss that may occur with each alternative. It involves calculating the regret for each decision alternative by subtracting the payoff of that alternative from the maximum possible payoff. The alternative with the least maximum regret is then selected as the best decision.

The Minimax Regret Criterion Minimizes the Maximum Opportunity Loss Within