Optimistic managers follow a maximax choice when they ________.
A) maximize the maximum possible payoff
B) maximize the minimum possible payoff
C) minimize the maximum regret
D) minimize the minimum regret

Question

Quizplus · Accepted Answer

Optimistic managers believe that the best possible outcome will occur, and therefore, they aim to maximize the maximum possible payoff. This decision-making approach is known as maximax choice.

Optimistic Managers Follow a Maximax Choice When They ________