Exhibit 14.7
The following questions use the information below.
A decision maker is faced with two alternatives. The decision maker has determined that she is indifferent between the two alternatives when p = 0.45.
-The category of decision rules that contains the maximax decision rule is the
A) optimistic category.
B) non-probabilistic category.
C) probabilistic category.
D) optimality category.

Question

Exhibit 14.7
The following questions use the information below.
A decision maker is faced with two alternatives. The decision maker has determined that she is indifferent between the two alternatives when p = 0.45. 
-The category of decision rules that contains the maximax decision rule is the
A) optimistic category. 
B) non-probabilistic category. 
C) probabilistic category. 
D) optimality category.

Quizplus · Accepted Answer

The non-probabilistic category contains decision rules that do not take into account the probabilities of different outcomes. The maximax decision rule is a non-probabilistic decision rule that chooses the action that has the highest maximum payoff.

Exhibit 14.7 The Following Questions Use the Information Below