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

question 64

Multiple Choice

A decision-maker using the maximin criterion on the problem below would choose Alternative ________ because the maximum of the row minimums 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; 55
• B) B; 30
• C) C; 70
• D) D; 140
• E) D; 10

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Definitions:

Factorial Experiment

An experimental design that allows simultaneous conclusions about two or more factors.

Treatment Combinations

In experimental design, the different sets of conditions applied to experimental units, used to determine the effect of multiple factors on an outcome.

Factor A

A term used in experimental design to represent an independent variable that is manipulated to observe its effect on a dependent variable.

Analysis of Variance

A collection of statistical models and their associated procedures used to analyze the differences among group means.