For a particular maximization problem, the payoff for best decision alternative is $15.7 million while the payoff for one of the other alternatives is $12.9 million. The regret associated with the alternate decision would be
A)$28.6 million.
B)$15.7 million.
C)$0.129 million.
D)$2.8 million.

Question

Quizplus · Accepted Answer

Regret is calculated as the difference between the payoff of the best decision and the payoff of the alternative decision. Here, $15.7 million - $12.9 million = $2.8 million.

For a Particular Maximization Problem, the Payoff for Best Decision