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Why are the Maximin, Maximax, and the Minimax regret models? Not appropriate? When some conditions and probabilities...

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Statistics

Whyare the Maximin, Maximax, and the Minimax regret models? Notappropriate? When some conditions and probabilities have a moderatelevel of certainty or predictability?

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4.3 Ratings (912 Votes)
Maximax OptimistThe maximax looks at the best that could happen under eachaction and then chooses the action with the largest value Theyassume that they will get the most possible and then they take theaction with the best case scenario The maximum ofthe maximums or the best of the best This isthe lotto player they see large payoffs and ignore theprobabilitiesMaximin PessimistThe maximin person looks at the worst that could happen undereach action and then choose the action with the largest payoffThey assume that the worst that can happen will and then they takethe action with the best worstcase scenario Themaximum of the minimums or thebest of the worst This is the person who puts their money into asavings account because they could lose money at the stockmarketMinimax OpportunistMinimax decision making is based on opportunistic loss They arethe kind that looks back after the state of nature has occurred andsay Now    See Answer
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