Question 1
A decision maker who uses the maximin criterion when solving a problem under conditions of uncertainty is
◦ an economist.
◦ an optimist.
◦ making a serious mistake; maximin is not appropriate for conditions of uncertainty.
◦ a pessimist.
◦ an optometrist.
Question 2
Expected monetary value is most appropriate for problem solving that takes place
◦ under conditions of risk.
◦ when conditions are average.
◦ when all states of nature are equally likely.
◦ when all alternatives are equally likely.
◦ under conditions of uncertainty.