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

Question

Quizplus · Accepted Answer

The Maximin criterion is used in decision making where the decision maker's risk tolerance is low, and they want to minimize the regret. It finds the worst possible outcome for each alternative, and then selects the alternative that provides the maximum minimum payoff. Therefore, the answer is choice letter A, Maximin.

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