Author Question: For a maximization problem, the conservative approach often is referred to as the __________ ... (Read 146 times)

mmm · **on:** Jun 24, 2018

For a maximization problem, the conservative approach often is referred to as the __________ approach.
a. maximin
b. maximax
c. minimax
d. minimin

Question 2

Choosing a decision alternative that maximizes the minimum profit is a feature of the __________ approach.
a. expected value
b. optimistic
c. conservative
d. maximin regret

nekcihc358 · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

a
RATIONALE: For a maximization problem, the conservative approach often is referred to as the maximin approach.

Answer to Question 2

c
RATIONALE: The conservative approach evaluates each decision alternative in terms of the worst payoff that can occur. It leads to choosing the decision alternative that provides the best of the worst possible payoffs.