In Decision-Making Under Uncertainty, the Approach That Considers Only the Best

question 90

Multiple Choice

In decision-making under uncertainty, the approach that considers only the best and the worst payoffs for each decision alternative is the __________.

• A)maximin criterion
• B)maximax criterion
• C)Hurwicz criterion
• D)minimax regret strategy
• E)maximin regret strategy

---

Definitions:

Positive Statement

An objective statement based on facts and evidence that can be tested and verified, focusing on describing "what is".

Economic Policy

Strategies and actions taken by the government to influence its economy, including policies on spending, taxation, and regulation.

Goal

An objective or desired outcome that an individual or organization aims to achieve within a specific timeframe.

Economic Models

Simplified representations of complex economic processes, used to predict and analyze economic behaviors and outcomes.