A decision maker using the maximin criterion on the problem below would choose Alternative ________ because the maximum of the row minimums is ________.
A) A; 55
B) B; 80
C) C; 70
D) D; 140
E) D; 10

Question

A decision maker using the maximin criterion on the problem below would choose Alternative ________ because the maximum of the row minimums is ________. 
A) A; 55 
B) B; 80 
C) C; 70 
D) D; 140 
E) D; 10

Quizplus · Accepted Answer

Using the maximin criterion, we choose the alternative with the highest minimum outcome. The minimum outcomes for each alternative are as follows: 
- Alternative A: 30 
- Alternative B: 80 
- Alternative C: 40 
- Alternative D: 10

Therefore, the maximum of these minimums is 80, which is the outcome for Alternative B. Therefore, the decision maker would choose Alternative B according to the maximin criterion.

A Decision Maker Using the Maximin Criterion on the Problem