The minimin choice strategy is
A) the action that minimizes the minimum possible returns across all states of nature.
B) the action that minimizes the maximum possible cost across all states of nature.
C) the action that minimizes the minimum possible cost across all states of nature.
D) the action that maximizes the minimum possible cost across all states of nature.
E) the action that maximizes the minimum possible returns across all states of nature.

Question

Quizplus · Accepted Answer

The minimin choice strategy minimizes the worst-case scenario by choosing the action that has the lowest minimum possible cost across all possible states of nature. This ensures that even in the worst possible outcome, the decision maker will face the smallest possible loss. Therefore, the best choice is the option that minimizes the minimum possible cost, which is option C.

The Minimin Choice Strategy Is