Choosing the alternative that minimizes lost-opportunity costs using decision making under uncertainty would be:
A) maximin.
B) maximax.
C) Laplace.
D) minimax regret.

Question

Quizplus · Accepted Answer

Minimax regret is the method of decision making under uncertainty that considers the opportunity costs of the alternatives. It minimizes the maximum regret that would be experienced for each decision in case the state of nature turns out to be unfavorable. Therefore, choosing the alternative that minimizes lost-opportunity costs aligns with minimax regret.

Choosing the Alternative That Minimizes Lost-Opportunity Costs Using Decision Making