Maximin is a criterion used when making decisions under _____________.
A)uncertainty
B)certainty
C)risk
D)alternatives
E)states of nature

Question

Quizplus · Accepted Answer

Maximin is used when making decisions under uncertainty, which means that the outcomes are not known and there is no accurate information to assess the probabilities of events. This criterion is conservative because it seeks to identify the worst-case scenario and choose the alternative that provides the highest payoff or lowest cost under that condition. Therefore, the maximin strategy minimizes the regret and protects against the most adverse outcomes that could occur.

Maximin Is a Criterion Used When Making Decisions Under _____________