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:

Anti-trust Legislation

Laws designed to protect consumers from predatory business practices by promoting competition and regulating monopolies.

Trade Associations

Organizations founded and funded by businesses that operate in a specific industry.

Fast Food Chain

A series of restaurants offering quick service and a menu of fast food items, often with a drive-through service.

15 Year-olds

Individuals of fifteen years of age, often considered for certain entry-level jobs or subject to specific labor laws and regulations.