Which of the following is a decision-making approach that attempts to find a compromise between the two extremes posed by the pessimistic maximin criterion and the optimistic maximax criterion by applying a certain percentage weight (α)to the most optimistic outcome,and (1-α)to the most pessimistic outcome.
A)maximax criterion
B)Laplace criterion
C)maximin criterion
D)Hurwicz criterion

Question

Quizplus · Accepted Answer

The approach described in the question is the Hurwicz criterion, which involves a weighted average of the best and worst possible outcomes. The weight is determined by the decision maker's level of optimism or pessimism and is represented by the parameter α. Therefore, the best choice is D, the Hurwicz criterion.

Which of the Following Is a Decision-Making Approach That Attempts