What decision criterion would be used by a pessimistic decision maker solving a problem under conditions of uncertainty?
A) expected monetary value
B) equally likely
C) maximax
D) maximin
E) minimin

Question

Quizplus · Accepted Answer

A pessimistic decision maker assumes the worst-case scenario and wants to minimize the regret associated with the decision. Therefore, the maximin criterion, which focuses on the worst possible outcome and chooses the alternative with the highest minimum payoff, is the best choice for such a decision maker.

What Decision Criterion Would Be Used by a Pessimistic Decision