In the Hurwicz equation,Hᵢ = α x (maximum payoff)+ (1-α)x (minimum payoff); if we set α = 1,then the equation reduces to ______.
A)maximin criterion
B)maximax criterion
C)Laplace criterion
D)minimax regret criterion

Question

Quizplus · Accepted Answer

When α = 1, the Hurwicz equation becomes Hᵢ = 1 x (maximum payoff) + (1-1) x (minimum payoff), which simplifies to just considering the maximum payoff. This approach, focusing solely on the maximum possible payoff, is known as the maximax criterion.

In the Hurwicz Equation,Hᵢ = α X (Maximum Payoff)+ (1-α)X