Decision-making Conditions
Helen is the manager for TrucksRUs, a medium-sized hauling service located in Victoria.She is responsible for scheduling trucks, initiating new routes and staffing both existing and new routes.She is currently struggling with existing information about the profitability of existing and future truck routes.
-Refer to Decision-making Conditions (Scenario).Helen wishes to minimise her regret and will probably opt for a ________ strategy.
A)certainty
B)risk
C)minimax
D)maximax
E)maximin

Question

Quizplus · Accepted Answer

Since Helen wishes to minimise her regret, she is likely to opt for a minimax strategy. This strategy involves minimizing the maximum loss that may be incurred from a decision. It is used when the decision maker is risk-averse and prefers to play it safe rather than going for a more profitable alternative with a higher level of risk. In this case, Helen may opt for a conservative approach that is likely to generate modest but certain profits rather than taking greater risks for potentially higher profits.

Decision-Making Conditions Helen Is the Manager for TrucksRUs, a Medium-Sized Hauling Service