Decision-Making Conditions: Keep on Truckin' (Scenario)
Fiona Lui is general manager of Westcoast Trucks, a medium-sized hauling service located in Vancouver, B.C. She is responsible for scheduling trucks, initiating new routes, and staffing both existing and new routes. She is currently struggling to find more information about the profitability of existing and future truck routes.
-If Fiona wishes to minimize her regret about the truck route decision,she should follow a ________ strategy.
A)multimax
B)minimin
C)minimax
D)maximax

Question

Quizplus · Accepted Answer

A minimax strategy involves minimizing the possible maximum regret that can occur. In other words, Fiona would need to consider the worst-case scenario for each route and choose the route that has the least regret associated with it. This strategy is ideal when there is a lot of uncertainty about the outcome of a decision and minimizing regret is important. Since Fiona is struggling to find information about the profitability of the routes, a minimax strategy would help her make a decision that minimizes her potential regret.