The ________ is a measure of the decision maker's optimism.
A) equal likelihood criterion
B) dominant decision
C) coefficient of optimism
D) opportunity loss

Question

Quizplus · Accepted Answer

The coefficient of optimism represents the degree of optimism or pessimism of the decision maker with respect to the outcome of a decision. It is a measure of the extent to which a decision maker is willing to take risks and is calculated by subtracting the minimum payoff from the maximum payoff and dividing the result by the difference between the maximum and minimum payoffs.

The ________ Is a Measure of the Decision Maker's Optimism