The Hurwicz criterion multiplies the
A) best payoff by the coefficient of optimism.
B) worst payoff by the coefficient of optimism.
C) best payoff by the worst payoff.
D) none of the above

Question

Quizplus · Accepted Answer

The Hurwicz criterion involves multiplying the best payoff by the coefficient of optimism, which represents how much weight the decision-maker gives to the best possible outcome. This approach is a compromise between optimistic and pessimistic views, as it considers both the best and worst possible outcomes in the decision-making process.

The Hurwicz Criterion Multiplies the