The maximin strategy:
A) minimizes the maximum gain.
B) maximizes the minimum gain.
C) minimizes the maximum regret.
D) maximizes the minimum regret.

Question

Quizplus · Accepted Answer

The maximin strategy involves choosing the option that maximizes the minimum gain. This is because it is based on the idea of pessimism, in which the decision maker assumes the worst-case scenario for each option and chooses the one with the highest minimum gain as a safety net.

The Maximin Strategy