Decision-Making Conditions (Scenario)
Sabah is the manager for CaterersRUs, a medium-sized catering company. She is responsible for initiating new client contacts, and staffing both existing and new assignments. She is currently struggling with existing information about the profitability of existing and future clients.
-Sabah knows that she is operating in an uncertain environment. She is basically an optimist, and we would, therefore, expect her to follow a ________ strategy.
A) certainty
B) risk
C) maximax
D) uncertainty

Question

Quizplus · Accepted Answer

Sabah is an optimist operating in an uncertain environment, so she is likely to follow a maximax strategy, which focuses on maximizing the maximum possible payoff.

Decision-Making Conditions (Scenario) Sabah Is the Manager for CaterersRUs, a Medium-Sized Catering Company