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.

Question

Quizplus · Accepted Answer

The maximin decision rule is most appropriate for a pessimistic manager because it focuses on choosing the alternative with the best worst-case scenario. This decision rule assumes that the worst outcome is the most likely and therefore seeks to minimize the maximum possible loss or regret.

The Decision Rule in Decision Making Under Uncertainty Most Appropriate