A maximax strategy will always choose the act or alternative that ________.
A)maximizes the expected monetary value
B)minimizes the maximum regret or opportunity loss
C)maximizes the potential payoff regardless of uncertainty
D)guarantees a payoff for any state of nature

Question

Quizplus · Accepted Answer

A maximax strategy focuses on maximizing the potential payoff regardless of uncertainty. It does not take into account the probabilities of different outcomes, but rather chooses the option with the highest potential reward. Therefore, the choice that maximizes the potential payoff regardless of uncertainty fits this description, which is choice C.

A Maximax Strategy Will Always Choose the Act or Alternative