Use the below payoff table with four mortgage options to answer the following question(s).
-Which of the following decisions is chosen in a minimax regret strategy?
A)the decision that minimizes the largest opportunity loss
B)the decision that maximizes the smallest opportunity loss
C)the decision that minimizes the smallest opportunity loss
D)the decision that maximizes the largest opportunity loss

Question

Use the below payoff table with four mortgage options to answer the following question(s). 
-Which of the following decisions is chosen in a minimax regret strategy?
A)the decision that minimizes the largest opportunity loss 
B)the decision that maximizes the smallest opportunity loss 
C)the decision that minimizes the smallest opportunity loss 
D)the decision that maximizes the largest opportunity loss

Quizplus · Accepted Answer

The minimax regret strategy involves choosing the option that minimizes the maximum regret (opportunity loss) that could be experienced. This means selecting the decision that has the smallest of the largest regrets across all scenarios.

Use the Below Payoff Table with Four Mortgage Options to Answer