Which of the Following Is a Decision-Making Approach That Attempts

question 27

Multiple Choice

Which of the following is a decision-making approach that attempts to minimize the regret,or loss,associated with making a nonoptimal decision?

• A)maximax criterion
• B)Laplace criterion
• C)maximin criterion
• D)minimax regret criterion

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Definitions:

Loanable Funds

The funds available in the financial markets for borrowing, which come from people's savings and the money printed by the government.

Government Expenditures

The total amount spent by the government in a given period, including spending on goods and services, social benefits, and public works.

Taxes On Interest Income

Taxes applied to income gained through interest from savings or investments.

Interest Rate

The amount charged by lenders to borrowers for the use of assets, expressed as a percentage of the principal, typically on an annual basis.