Which of the Following Is a Drawback of the Maximax

question 67

Multiple Choice

Which of the following is a drawback of the maximax criterion?

• A)It ignores the payoffs associated with the "high demand" state of nature.
• B)It ignores the payoffs associated with the "low demand" state of nature.
• C)It is not a good method to use when the states of nature are not equally probable.
• D)It ignores the maximum payoff that could be realized if the decision maker were a risk taker.

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Definitions:

Human Resources Management

A function within organizations focused on recruiting, managing, and directing people who work in it.

Management Function

The activities undertaken by managers in planning, organizing, leading, and controlling to achieve organizational goals.

Expensive

Referring to something that has a high cost or price, often requiring a considerable amount of money to purchase.

Hygiene Factors

Factors related to the work environment that, while not directly motivating, can lead to dissatisfaction if missing or inadequate; a concept in Herzberg's two-factor theory.