In the Hurwicz equation,Hi = α x (maximum payoff)+ (1-α)x (minimum payoff); if we set α = 0,then the equation reduces to ______.
A)maximin criterion
B)maximax criterion
C)Laplace criterion
D)minimax regret criterion

Question

Quizplus · Accepted Answer

If we set α = 0 in the Hurwicz equation, then the equation reduces to Hi = (minimum payoff), which is the maximin criterion. Therefore, the correct answer is (A) maximin criterion.

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