In decision-making under uncertainty, an optimistic approach is the __________.
A)maximin criterion
B)maximax criterion
C)Hurwicz criterion
D)minimax regret strategy
E)maximin regret strategy

Question

Quizplus · Accepted Answer

The maximax criterion is an optimistic approach in decision-making under uncertainty that involves selecting the option with the highest possible payoff in the best-case scenario. This approach is appropriate when the decision-maker is highly risk-tolerant and is willing to take the chance of achieving the best possible outcome, even if the likelihood of that outcome is low. Other approaches such as the minimax regret strategy or maximin criterion are more conservative and focus on minimizing the potential loss or regret associated with each decision.

In Decision-Making Under Uncertainty, an Optimistic Approach Is the __________