Which of the following is a decision-making approach used when the decision maker is optimistic about the future events and their outcomes,identifies the maximum payoff associated with each decision,and chooses the maximum of the maximum payoffs?
A)maximax criterion
B)Laplace criterion
C)maximin criterion
D)minimax regret criterion

Question

Quizplus · Accepted Answer

The maximax criterion is used when the decision maker is optimistic about the future events and their outcomes, and aims to identify the maximum payoff associated with each decision. The decision maker chooses the maximum of the maximum payoffs, which is the most optimistic approach to decision making.

Which of the Following Is a Decision-Making Approach Used When