A manager has developed a payoff table that indicates the profits associated with a set of alternatives under two possible states of nature.
$$\begin{array} { c c c }
\text { Alt } & \mathbf { S } _ { \mathbf { 1 } } & \mathbf { S } _ { \mathbf { 2 } } \
\mathbf { 1 } & 10 & 2 \
\mathbf { 2 } & - 2 & 8 \
\mathbf { 3 } & 8 & 5
\end{array}$$
-If the manager uses minimax regret as the decision criterion, which of the alternatives would she choose?

Question

A manager has developed a payoff table that indicates the profits associated with a set of alternatives under two possible states of nature.
 $$\begin{array} { c c c } 
\text { Alt } & \mathbf { S } _ { \mathbf { 1 } } & \mathbf { S } _ { \mathbf { 2 } } \
\mathbf { 1 } & 10 & 2 \
\mathbf { 2 } & - 2 & 8 \
\mathbf { 3 } & 8 & 5
\end{array}$$
-If the manager uses minimax regret as the decision criterion, which of the alternatives would she choose?

Quizplus · Accepted Answer

The Answer of A manager has developed a payoff table that indicates the profits associated with a set of alternatives under two possible states of nature.
 $$\begin{array} { c c c } 
\text { Alt } & \mathbf { S } _ { \mathbf { 1 } } & \mathbf { S } _ { \mathbf { 2 } } \
\mathbf { 1 } & 10 & 2 \
\mathbf { 2 } & - 2 & 8 \
\mathbf { 3 } & 8 & 5
\end{array}$$
-If the manager uses minimax regret as the decision criterion, which of the alternatives would she choose?

A Manager Has Developed a Payoff Table That Indicates the Profits