In the maximax strategy a manager choosing between two options will choose the option that
A)has the highest expected profit.
B)provides the best of the worst possible outcomes.
C)provides the best of the highest possible outcomes.
D)has the lowest variance.
E)a and d

Question

Quizplus · Accepted Answer

The maximax strategy is based on selecting the option that provides the best of the highest possible outcomes. This strategy assumes that the decision maker is optimistic and willing to take risks to achieve the highest possible payoff. Therefore, the option that maximizes the best possible outcome is the best choice. Option C satisfies this criterion.

In the Maximax Strategy a Manager Choosing Between Two Options