Which of the Following Is a Drawback of the Minimax

question 41

Multiple Choice

Which of the following is a drawback of the minimax regret 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 and the probabilities associated with the possible state of nature.

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Definitions:

Effectiveness

The degree to which something achieves its intended outcome or results.

Effective Politic

Strategies or practices within organizational or government contexts that are successful in achieving desired outcomes through the use of influence, negotiation, and alliances.

Impulsive

Acting or done without forethought; driven by momentary desires or whims.

Rash

A noticeable breakout on the skin that can be caused by various factors, including allergies, diseases, or irritations.