The maximax criterion results in the
A) maximum of the minimum payoffs.
B) maximum of the maximum payoffs.
C) minimum of the maximum payoffs.
D) minimum of the minimum payoffs.

Question

Quizplus · Accepted Answer

The maximax criterion focuses on the best possible outcome and selects the decision alternative that maximizes the maximum possible payoff. This criterion assumes that the decision maker is optimistic and seeks the best possible payoff, even if the probability of achieving it is low. Therefore, the best choice according to the maximax criterion is the maximum of the maximum payoffs.

The Maximax Criterion Results in the