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

question 78

Multiple Choice

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

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

---

Definitions:

Shopping

The act of seeking and purchasing goods or services from stores or online platforms.

Zappos

An online retailer known for its extensive selection of shoes and clothing as well as exceptional customer service, including free returns and a strong commitment to customer satisfaction.

Brand Name

A unique designation given to goods or services provided by a specific manufacturer or provider, used to distinguish them from competitors.

Actual Product

The physical attributes of a product including the brand name, features/design, quality level, and packaging.