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 a pessimist, and we would, therefore, expect her to follow a ________ strategy.
A) certainty
B) maximin
C) minimax
D) risk

Question

Quizplus · Accepted Answer

A pessimist in an uncertain environment would likely follow a maximin strategy, which focuses on maximizing the minimum possible payoff, preparing for the worst-case scenario.

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