A minimax regret strategy will always choose the act or alternative that ________.
A)maximizes the expected monetary value
B)minimizes the maximum regret or opportunity loss
C)maximizes the potential payoff regardless of uncertainty
D)guarantees a payoff for any state of nature

Question

Quizplus · Accepted Answer

A minimax regret strategy focuses on minimizing the maximum possible regret, or opportunity loss, rather than maximizing expected monetary value, potential payoff, or guaranteeing a payoff for any state of nature. Therefore, the correct choice is B, which is to minimize the maximum regret.

A Minimax Regret Strategy Will Always Choose the Act or Alternative