Determining the worst payoff for each alternative and choosing the alternative with the best of the worst payoffs is called a ________ criterion.
A) maximin
B) minimin
C) maximax
D) minimax

Question

Quizplus · Accepted Answer

The given scenario suggests that we need to choose the alternative with the best of the worst payoffs. This can be achieved with a maximin criterion, where we determine the worst payoffs for each alternative and choose the alternative with the best (maximum) of the worst payoffs. So, the answer is A (maximin).

Determining the Worst Payoff for Each Alternative and Choosing the Alternative