Chapter 09 CD Supplement – Decision Analysis
True / False Questions
1. The maximax approach is an optimistic strategy.
2. An example of maximax decision making is a person buying lottery tickets in hopes of a
very big payoff.
3. The maximin approach involves choosing the alternative with the highest payoff.
4. The maximin criterion is an optimistic criterion.
5. The maximin approach involves choosing the alternative that has the “best worst” payoff.
6. A weakness of the maximin approach is that it loses some information.
7. The minimax regret criterion is a conservative criterion.
9s-6
24. The minimax regret strategy is:
25. The maximum likelihood strategy is:
26. The equally likely strategy is:
