In Decision-Making Under Uncertainty, an Optimistic Approach Is the __________

question 87

Multiple Choice

In decision-making under uncertainty, an optimistic approach is the __________.

• A)maximin criterion
• B)maximax criterion
• C)Hurwicz criterion
• D)minimax regret strategy
• E)maximin regret strategy

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Definitions:

Inferior Good

A type of good for which demand decreases as the income of individuals increases, inversely related to income levels.

Substitutes

Goods or services that can be used in place of each other, where an increase in the price of one leads to an increase in the demand for the other.

Demand Curve

A visual chart that illustrates the connection between the cost of an item and the amount consumers are willing to buy at those costs.

Demand Curve

A chart that illustrates how the quantity of a product that consumers are ready to buy varies with its price.