The appropriate criterion is dependent on
A) the risk personality of the decision maker
B) the number of nodes in the decision tree.
C) the magnitude of the payoffs.
D) none of the above

Question

Quizplus · Accepted Answer

The appropriate criterion for decision-making depends on the risk personality of the decision maker, as different people have different levels of risk tolerance. Some may be risk-averse and prefer to minimize potential losses, while others may be risk-seeking and prefer strategies with potentially higher payoffs despite higher risks. The other factors may also influence the decision-making process, but the risk personality of the decision maker is the most important criterion.

The Appropriate Criterion Is Dependent on