A Manager Has Developed a Payoff Table That Indicates the Profits

question 115

Short Answer

A manager has developed a payoff table that indicates the profits associated with a set of alternatives under two possible states of nature.
$$\begin{array} { c c c } \text { Alt } & \mathbf { S } _ { \mathbf { 1 } } & \mathbf { S } _ { \mathbf { 2 } } \\\mathbf { 1 } & 10 & 2 \\\mathbf { 2 } & - 2 & 8 \\\mathbf { 3 } & 8 & 5\end{array}$$
-If the manager uses maximin as the decision criterion, which of the alternatives should she choose?

---

Definitions:

Body Mass Index

A numerical value derived from the weight and height of an individual, used to classify underweight, healthy weight, overweight, and obesity.

Obese

A medical condition characterized by excessive body fat that presents a risk to health.

Body Fat

The portion of the human body composed of fat cells, which serve as energy storage and insulation.

Skin-Fold Technique

A method to estimate body fat percentage by measuring the thickness of skin folds at specific body sites.