A Decision-Maker Using the Maximin Criterion on the Problem Below

question 80

Multiple Choice

A decision-maker using the maximin criterion on the problem below would choose Alternative __________ because the maximum of the row minimums is __________.

• A) A; 55
• B) B; 30
• C) C; 70
• D) D; 140
• E) D; 10

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Definitions:

One-Sample Tests

Statistical tests used to compare the mean of a sample to a known value or standard, in order to assess if the sample comes from a population with that specific mean.

Alternative Hypotheses

In statistical testing, a hypothesis that suggests a difference or effect contrary to the null hypothesis, essentially proposing that an observed effect is real.

Null

In statistics, this refers to the null hypothesis, which is a default hypothesis that there is no significant difference or effect.

Average Profit

The mean financial gain computed by dividing the total profit by the number of units sold or transactions, providing insight into overall profitability.