In the Hurwicz Equation,Hi = α X (Maximum Payoff)+ (1-α)X

question 33

Multiple Choice

In the Hurwicz equation,Hi = α x (maximum payoff) + (1-α) x (minimum payoff) ; if we set α = 0,then the equation reduces to ______.

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

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Definitions:

Bailee's Lien

The right of a bailee to retain possession of a bailor's property as security for unpaid charges related to the property.

Bailor

A person who entrusts their property into the care of another, known as the bailee, for a particular purpose.

Personal Property

Assets or belongings that are not fixed permanently to one location, such as furniture, vehicles, and electronics, distinct from real property like land or buildings.

Inter Vivos Gift

A gift that is made by a person during his or her lifetime.