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Match the following non-probabilistic decision criteria with the appropriate descriptor.Group of answer choicesmaximaxmaximinminimax regrethurwiczequal likelihood

Question

Match the following non-probabilistic decision criteria with the appropriate descriptor.Group of answer choicesmaximaxmaximinminimax regrethurwiczequal likelihood

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Solution

Sure, here are the matches for the non-probabilistic decision criteria with their appropriate descriptors:

  1. Maximax: This is also known as the optimistic criterion. It is used when the decision maker is a risk taker and wants to maximize the maximum payoff.

  2. Maximin: This is also known as the pessimistic criterion. It is used when the decision maker is risk averse and wants to maximize the minimum payoff.

  3. Minimax Regret: This criterion is used when the decision maker wants to minimize the maximum regret. Regret is the difference between the payoff from the best decision and all other decision payoffs.

  4. Hurwicz: This criterion is a compromise between the maximax and maximin criteria. It uses a coefficient of optimism to weigh the maximum and minimum payoffs.

  5. Equal Likelihood: This is also known as the criterion of insufficient reason. It is used when the decision maker has no reason to believe that any one event is more likely than others. All events are assumed to have equal probability.

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