A matrix that, for each state of nature and strategy, shows the difference between a strategy's payoff and the best strategy's payoff is called
A) a maximin matrix.
B) a minimax regret matrix.
C) a payoff matrix.
D) an expected utility matrix.

Question

Quizplus · Accepted Answer

A minimax regret matrix is designed to show the difference between the payoff of the chosen strategy and the best possible strategy for each state of nature, thereby highlighting the regret or loss from not choosing the optimal strategy.

A Matrix That, for Each State of Nature and Strategy