Reference - 12.1: Use the payoff table given below for a maximization problem to answer questions 18-19.

-Reference - 12.1: Which is the recommended decision alternative using the optimistic approach?
A) D1
B) D4
C) D2
D) D5

Question

Reference - 12.1: Use the payoff table given below for a maximization problem to answer questions 18-19.
 
-Reference - 12.1: Which is the recommended decision alternative using the optimistic approach?
A) D1 
B) D4 
C) D2 
D) D5

Quizplus · Accepted Answer

For a maximization problem, the optimistic approach advocates choosing the decision alternative with the maximum payoff, which is given by the decision alternative D4.