The _____________ criterion finds the best-possible payoff for each alternative and then chooses the alternative that yields the maximum best-possible payoff.
A)Maximin
B)Certainty
C)Maximax
D)Decision

Question

Quizplus · Accepted Answer

The maximax criterion is used when decision makers are optimistic and want to choose the alternative with the highest possible payoff. It involves finding the maximum possible payoff for each alternative and choosing the one with the highest maximum. This approach is useful when risks can be avoided or when there is a high level of uncertainty. Therefore, the best choice in this case would be to use the maximax criterion.

The _____________ Criterion Finds the Best-Possible Payoff for Each Alternative