Exhibit 14.8 The Following Questions Use the Information Below

question 22

Multiple Choice

Exhibit 14.8
The following questions use the information below.
A company needs to buy a new insurance policy. They have three policies to choose from, A, B and C. The policies differ with respect to price, coverage and ease of billing. The company has developed the following AHP tables for price and summary. The other tables are not shown due to space limitations.
-Which decision rule optimistically assumes that nature will always be "on our side" regardless of what decision we make?

• A) maximax decision rule.
• B) maximin decision rule.
• C) minimax regret decision rule.
• D) minimin decision rule.

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Definitions:

Connective Tissue

A type of biological tissue that supports, connects, or separates different types of tissues and organs in the body, characterized by an abundance of extracellular matrix.

Collagen

Collagen is a structural protein found in the connective tissues of animals, including humans, providing tensile strength and elasticity to skin, tendons, ligaments, and bones.

Elastic

A property of materials that enables them to resume their original shape after being stretched or compressed.

Cartilage

A flexible, rubbery connective tissue found in various forms in the larynx and respiratory tract, the external ear, the joints, the rib cage, and elsewhere in the body.