The decision rule in decision making under uncertainty that would be best for the manager who has high expectations would be:
A) maximin.
B) maximax.
C) Laplace.
D) minimax regret.

Question

Quizplus · Accepted Answer

The maximax decision rule selects the alternative that has the highest possible payoff in the best-case scenario. This rule is suitable for a manager with high expectations who is optimistic about the outcomes of the alternatives. The maximax rule ignores the probability of the different outcomes and assumes that the best-case scenario will always occur.

The Decision Rule in Decision Making Under Uncertainty That Would