This regret matrix gives potential dollar values in thousands for strategies S1, S2, S3, and S4 for Al's Fish Fry and competitive strategies CA1, CA2, and CA3 for Sal's Fish Bake. If Al wants to minimize his maximum regret, which strategy should he choose?
A) S4
B) S3
C) S2
D) S1

Question

This regret matrix gives potential dollar values in thousands for strategies S1, S2, S3, and S4 for Al's Fish Fry and competitive strategies CA1, CA2, and CA3 for Sal's Fish Bake. If Al wants to minimize his maximum regret, which strategy should he choose? 
A) S4 
B) S3 
C) S2 
D) S1

Quizplus · Accepted Answer

C) Al's maximum regrets are 15 for S1, 12 for S2, 17 for S3, and 16 for S4. The lowest of the four maximum values is 12, so S2 identifies the smallest possible maximum regret.

This Regret Matrix Gives Potential Dollar Values in Thousands for Strategies