What Decision Criterion Would Be Used by an Optimistic Decision

question 46

Multiple Choice

What decision criterion would be used by an optimistic decision maker solving a problem under conditions of uncertainty?

• A)expected monetary value
• B)equally likely
• C)maximax
• D)maximin
• E)minimin

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Definitions:

Inventories

Raw materials, work-in-process products, and completely finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.

Operating Costs

Expenses associated with the day-to-day functions of running a business, excluding capital expenditures.

Net Sales

Revenue from sales transactions after deducting returns, allowances for damaged goods, and discounts.

Assets

Resources owned or controlled by a business, expected to produce future economic benefits.