A decision-maker using the maximax criterion on the problem below would choose Alternative ________ because the maximum of the row maximums is ________. States of Nature
$$\begin{array} { | c | c | c | c | }
\hline & 1 & 2 & 3 \
\hline \text { Alternative A } & 50 & 55 & 60 \
\hline \text { Alternative B } & 30 & 50 & 80 \
\hline \text { Alternative C } & 70 & 80 & 70 \
\hline \text { Alternative D } & - 100 & - 10 & 140 \
\hline
\end{array}$$
A) A; 60
B) B; 80
C) C; 70
D) D; -100
E) D; 140

Question

A decision-maker using the maximax criterion on the problem below would choose Alternative ________ because the maximum of the row maximums is ________. States of Nature
$$\begin{array} { | c | c | c | c | } 
\hline & 1 & 2 & 3 \
\hline \text { Alternative A } & 50 & 55 & 60 \
\hline \text { Alternative B } & 30 & 50 & 80 \
\hline \text { Alternative C } & 70 & 80 & 70 \
\hline \text { Alternative D } & - 100 & - 10 & 140 \
\hline
\end{array}$$
A) A; 60
B) B; 80
C) C; 70
D) D; -100
E) D; 140

Quizplus · Accepted Answer

The maximax criterion involves selecting the alternative with the highest possible payoff. For Alternative D, the maximum payoff is 140, which is the highest among all alternatives.

A Decision-Maker Using the Maximax Criterion on the Problem Below