Which of the following is a probabilistic decision criterion?
A)Maximax
B)Maximin
C)Minimax regret
D)Expected value

Question

Quizplus · Accepted Answer

Expected value is a probabilistic decision criterion that involves calculating the expected value of each option and choosing the option with the highest expected value. This takes into account both the probability of different outcomes and their associated values. The other options (Maximax, Maximin, Minimax regret) do not involve probability and instead focus on maximizing the best case scenario, minimizing the worst case scenario, or minimizing potential regret, respectively.

Which of the Following Is a Probabilistic Decision Criterion