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.

---

Definitions:

Common Law Rights

Rights or protections that are established and respected by court decisions rather than written statutes.

Environmental Protection Legislation

Laws and regulations designed to conserve the environment and reduce pollution and destruction of natural habitats.

Obligation on Innkeepers

Refers to the legal requirement for innkeepers to provide reasonable care for their guests' safety and their belongings.

Statute

A written law passed by a legislative body at the federal, state, or local level.