A Maximin Strategy Will Always Choose the Act or Alternative

question 41

Multiple Choice

A maximin strategy will always choose the act or alternative that ________.

• A)maximizes the expected monetary value
• B)minimizes the maximum regret or opportunity loss
• C)maximizes the potential payoff regardless of the state of nature
• D)guarantees a payoff for any state of nature

---

Definitions:

Stockholders' Equity

The ownership interest of shareholders in a corporation, represented by their shares of the company's stock.

Cash Dividend

It's a payment made by a company out of its profits to shareholders, distributed in cash, based on the number of shares held.

Expense

An outflow of resources or incurrence of liabilities that result from a company's operations, aimed at generating revenue.

Prior Period Adjustment

A correction of errors in financial statements that were made in previous periods, affecting retained earnings on the balance sheet.