This regret matrix gives potential dollar values in thousands for strategies S1, S2, S3, and S4 for Al's Fish Fry and competitive strategies CA1, CA2, and CA3 for Sal's Fish Bake.If Al wants to minimize his maximum regret, which strategy should he choose?
A)S4
B)S3
C)S2
D)S1

Question

This regret matrix gives potential dollar values in thousands for strategies S1, S2, S3, and S4 for Al's Fish Fry and competitive strategies CA1, CA2, and CA3 for Sal's Fish Bake.If Al wants to minimize his maximum regret, which strategy should he choose? 
A)S4 
B)S3 
C)S2 
D)S1

Quizplus · Accepted Answer

To minimize maximum regret, we need to find the maximum value in each column and then choose the strategy with the minimum maximum regret. The maximum regret values for each strategy are: S1 - 10, S2 - 8, S3 - 12, S4 - 11. Therefore, the best strategy for Al to choose is S2, as it has the smallest maximum regret value of 8.

This Regret Matrix Gives Potential Dollar Values in Thousands for Strategies