Consider the payoff table in problem 7.The optimal decision under the principle of insufficient reason criterion is:
A)D1
B)D2
C)D3
D)D4

Question

Quizplus · Accepted Answer

The principle of insufficient reason states that if there is no information to suggest otherwise, then all outcomes are equally likely. In this case, there is no information to suggest that any of the decisions are more likely than the others, so the optimal decision is the one that has the highest payoff. D1 has the highest payoff, so it is the optimal decision.

Consider the Payoff Table in Problem 7