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 maximin approach to decision-making
A) maximizes the minimum return
B) maximizes the maximum return
C) maximizes the minimum regret
D) minimizes the minimum regret

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 maximin approach to decision-making
A) maximizes the minimum return 
B) maximizes the maximum return 
C) maximizes the minimum regret 
D) minimizes the minimum regret

Quizplus · Accepted Answer

The maximin approach to decision-making focuses on maximizing the minimum return, ensuring that the worst-case scenario is as good as possible.

Exhibit 14.7 The Following Questions Use the Information Below