Exhibit 14.8 The Following Questions Use the Information Below

question 33

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.
-Every nonprobabilistic method has a weakness for decision making. Which of the following is incorrect regarding a method and its weakness?

• A) The maximax method ignores potentially large losses.
• B) The maximin method ignores potentially large payoffs.
• C) The minimax regret method can lead to inconsistent decisions.
• D) All of these are correct.

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Definitions:

Overgeneralization

A cognitive distortion involving broad conclusions or rules based on a single event or piece of evidence.

Life's Demands

The various responsibilities, pressures, and challenges that one must manage or meet in daily life.

The Question

Often involves a central, unresolved inquiry within a narrative or study that drives exploration or discussion.

Negative Attitudes

Persistent patterns of thinking that are pessimistic, critical, or defeatist, which can affect an individual's behavior and emotional state.