The decision rule in decision making under uncertainty that is 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 suitable for a pessimistic manager as it focuses on minimizing the maximum possible loss or regret. This decision rule assumes that the worst outcome will occur and therefore the decision is made to minimize the loss in such a scenario. This is ideal for a manager who is risk-averse and wants to protect the organization from potential losses.

The Decision Rule in Decision Making Under Uncertainty That Is