For a payoff table containing company profit values, an optimistic manufacturer would most likely use the _______ criterion.
A) minimax
B) $\operatorname{maximax}$
C) maximin
D) minimin

Question

Quizplus · Accepted Answer

The maximax criterion is used by optimistic decision-makers because it focuses on maximizing the maximum payoff, essentially choosing the option with the highest possible profit without considering the risks or lower outcomes.

For a Payoff Table Containing Company Profit Values, an Optimistic maximax⁡\operatorname{maximax}maximax

For a Payoff Table Containing Company Profit Values, an Optimistic $\operatorname{maximax}$