Which of the following techniques is the most widely used decision-making criterion under risk?
A)maximax criterion
B)minimax regret criterion
C)expected value criterion
D)Hurwicz criterion

Question

Quizplus · Accepted Answer

The expected value criterion is the most widely used decision-making criterion under risk, as it calculates the expected value of each possible outcome and weighs them by their probability of occurring. This allows decision-makers to make a rational and informed decision based on the calculated outcome. The other criteria listed (maximax, minimax regret, and Hurwicz) are decision-making criteria under uncertainty and are not applicable in situations where probabilities are known.

Which of the Following Techniques Is the Most Widely Used