What decision criterion would be used by an optimistic decision maker solving a problem under conditions of uncertainty?
A)expected monetary value
B)equally likely
C)maximax
D)maximin
E)minimin

Question

Quizplus · Accepted Answer

An optimistic decision maker would want to choose the option with the highest potential payoff, even if it is unlikely to occur. The maximax criterion chooses the alternative with the highest possible payoff. Therefore, it is the best choice for an optimistic decision maker.

What Decision Criterion Would Be Used by an Optimistic Decision