The maximin criterion refers to:
A)minimizing the maximum return
B)maximizing the minimum return
C)choosing the alternative with the highest payoff
D)choosing the alternative with the minimum payoff
E)None of the above

Question

The maximin criterion refers to:
A)minimizing the maximum return 
B)maximizing the minimum return 
C)choosing the alternative with the highest payoff 
D)choosing the alternative with the minimum payoff 
E)None of the above

Quizplus · Accepted Answer

The maximin criterion involves selecting the alternative that maximizes the minimum possible outcome. In other words, it focuses on the worst-case scenario and chooses the option with the highest possible outcome for that scenario. This approach is often used in decision-making under uncertainty or risk. Option B represents this approach, while the other options do not.

The Maximin Criterion Refers To