Using the minimax regret rule the manager makes the decision
A)with the smallest worst-potential regret.
B)with the largest worst-potential regret.
C)knowing he will not regret it.
D)that has the highest expected value relative to the other decisions.

Question

Quizplus · Accepted Answer

The minimax regret rule seeks to minimize the maximum regret that could be incurred from each decision. Therefore, the manager should choose the decision that has the smallest worst potential regret. This will ensure that no matter what happens, the manager will not regret their decision as much as they would have if they chose any other option.

Using the Minimax Regret Rule the Manager Makes the Decision