Consider the following decision table with rewards in $ millions. Using the maximin criterion,the appropriate choice would be ___. A)d₁ B)d₂ C)d₃ D)d₄ E)d₅

Question

Quizplus · Accepted Answer

The maximin criterion requires us to choose the alternative with the highest minimum payoff. Looking at the table, the worst possible outcome for each alternative is listed in the last row. For alternative S1U1B11, the worst possible outcome is -2 million. For alternative S1U1B12, the worst possible outcome is -1 million. For alternative S1U1B13, the worst possible outcome is 0 million. For alternative S1U1B14, the worst possible outcome is 1 million. For alternative S1U1B15, the worst possible outcome is 2 million. 
Therefore, the highest minimum payoff is 1 million, which is achieved by choosing alternative S1U1B14, making it the appropriate choice according to the maximin criterion.

Consider the Following Decision Table with Rewards in $ Millions