SCENARIO 19-2
The following payoff matrix is given in dollars. $\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\text { Action }$
$\begin{array}{l}
\begin{array} { c c c }
\text { Event } & A & B \
\hline 1 & 400 & 700 \
2 & 200 & 500
\end{array}
\end{array}$ Suppose the probability of Event 1 is 0.5 and Event 2 is 0.5.
-Referring to Scenario 19-2, what is the best action using the maximax criterion?
A) Action A
B) Action B
C) Either Action A or Action B
D) It cannot be determined.

Question

SCENARIO 19-2
The following payoff matrix is given in dollars. $\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\text { Action }$
$\begin{array}{l}
\begin{array} { c c c } 
\text { Event } & A & B \
\hline 1 & 400 & 700 \
2 & 200 & 500
\end{array}
\end{array}$ Suppose the probability of Event 1 is 0.5 and Event 2 is 0.5.
-Referring to Scenario 19-2, what is the best action using the maximax criterion?
A) Action A
B) Action B
C) Either Action A or Action B
D) It cannot be determined.

Quizplus · Accepted Answer

The maximax criterion selects the action with the maximum possible payoff. Action B has the highest payoff of 700.

SCENARIO 19-2 the Following Payoff Matrix Is Given in Dollars \quad

SCENARIO 19-2
the Following Payoff Matrix Is Given in Dollars $\quad$