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

question 43

Multiple Choice

A decision-maker using the maximax criterion on the problem below would choose Alternative ________ because the maximum of the row maximums is ________. States of Nature
$$\begin{array} { | c | c | c | c | } \hline & 1 & 2 & 3 \\\hline \text { Alternative A } & 50 & 55 & 60 \\\hline \text { Alternative B } & 30 & 50 & 80 \\\hline \text { Alternative C } & 70 & 80 & 70 \\\hline \text { Alternative D } & - 100 & - 10 & 140 \\\hline\end{array}$$

• A) A; 60
• B) B; 80
• C) C; 70
• D) D; -100
• E) D; 140

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Definitions:

Profit-Orientation

A business approach focused on generating financial gain and maximizing profits.

LGBT

An acronym for lesbian, gay, bisexual, and transgender, used to refer to individuals' sexual orientation or gender identity.

Alcohol

A chemical substance found in drinks such as beer, wine, and spirits that can alter mood and behavior, often leading to intoxication.

Mental Health

A state of well-being in which an individual realizes their own abilities, can cope with the normal stresses of life, can work productively, and is able to make contributions to their community.