Determining the worst payoff for each alternative and choosing the alternative with the "best worst" is the criterion called:
A) minimin.
B) maximin.
C) maximax.
D) maximum likelihood.
E) Bayes decision rule.

Question

Quizplus · Accepted Answer

The maximin criterion involves looking at the worst possible outcome for each decision alternative and then choosing the alternative that has the best (or least bad) of these worst outcomes. This approach is particularly used in decision-making under uncertainty, where the decision-maker is conservative or risk-averse.

Determining the Worst Payoff for Each Alternative and Choosing the Alternative