The preferred criterion in decision making is.
A) maximin
B) maximax
C) EMV
D) None of these options

Question

Quizplus · Accepted Answer

EMV (Expected Monetary Value) takes into account both the probability of an outcome and the monetary value associated with it. This provides a more complete analysis of a decision compared to Maximin (maximum of minimums) or Maximax (maximum of maximums), which only consider the best or worst possible outcome respectively. Therefore, EMV is generally the preferred criterion in decision making.

The Preferred Criterion in Decision Making Is