Figure
-The minimax regret strategy is:
A)Buy.
B)Rent.
C)Lease.
D)High.
E)Low.

Question

Figure 
-The minimax regret strategy is:
A)Buy. 
B)Rent. 
C)Lease. 
D)High. 
E)Low.

Quizplus · Accepted Answer

The minimax regret strategy involves selecting the option with the least maximum regret. In this case, if we choose to rent, the maximum regret we can have is 800. However, if we choose to lease or buy, the maximum regret can be much higher (up to 1600 or even 2000). Therefore, the best choice is to rent. The choices of "High" or "Low" do not make sense in this context as they are not options presented in the figure.

Figure -The Minimax Regret Strategy Is