If the minimum expected regret is computed, it indicates to a decision-maker the expected:
A)value of perfect information
B)payoff under certainty
C)monetary value
D)payoff under risk
E)none of the above

Question

Quizplus · Accepted Answer

The minimum expected regret criterion helps decision-makers identify the alternative that minimizes the maximum regret that they might experience based on their decision. It provides a measure of the value of perfect information, which would reduce the maximum regret to zero. Therefore, the correct answer is A) value of perfect information.

If the Minimum Expected Regret Is Computed, It Indicates to a Decision-Maker