Which of the following approaches for dealing with uncertainty involves comparing the worst possible outcomes for each alternative and selecting the one that is least undesirable?
A) The expected value approach
B) The optimistic approach
C) The maximin approach
D) The gambling approach
E) The risk-averting approach

Question

Quizplus · Accepted Answer

The maximin approach involves evaluating alternatives based on the worst possible outcome for each alternative, and selecting the one with the least undesirable worst outcome. This approach is best when the decision maker is risk-averse and prioritizes avoiding negative outcomes over maximizing potential gains.

Which of the Following Approaches for Dealing with Uncertainty Involves