The Decision Rule in Decision Making Under Uncertainty Most Appropriate

question 80

Multiple Choice

The decision rule in decision making under uncertainty most appropriate for the pessimistic manager would be:

• A)maximin.
• B)maximax.
• C)Laplace.
• D)minimax regret.

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Definitions:

Forward Contract Payable

A financial instrument obligating the buyer to purchase an asset or the seller to sell an asset at a predetermined future date and price.

Spot Rate

The present cost at which a specific currency is available for purchase or sale, with immediate transfer.

Swiss Francs (CHF)

The currency of Switzerland, known for its strength and stability in the financial market.

Forward Contract

A non-standardized contract between two parties to buy or sell an asset at a specified future date at a price agreed upon today.