Quantitative Methods Ch. 12 Quiz A questions and
answers 2025\2026 A+ Grade
Payoff table (states of nature are Economy Improves, "Economy Stays the Same, and Economy Gets
Worse):
Expensive: 80,000; 40,000; 10,000
Medium: 40,000; 60,000; 70,000
Inexpensive: 10,000; 30,000; 60,000
Determine the best investment using maximax.
- correct answer Expensive
What is the value associated with that decision? (Maximax, Expensive)
- correct answer 80,000
Which decision would you make using the maximin criterion?
- correct answer Medium
What is the value associated with that decision? (Maximin, Medium)
- correct answer 40,000
Complete a regret table. Which decision would you make using the minimax criterion?
- correct answer Medium
List the values of the top row of your regret table with a space between each one.
- correct answer 0; 20,000; 60,000
answers 2025\2026 A+ Grade
Payoff table (states of nature are Economy Improves, "Economy Stays the Same, and Economy Gets
Worse):
Expensive: 80,000; 40,000; 10,000
Medium: 40,000; 60,000; 70,000
Inexpensive: 10,000; 30,000; 60,000
Determine the best investment using maximax.
- correct answer Expensive
What is the value associated with that decision? (Maximax, Expensive)
- correct answer 80,000
Which decision would you make using the maximin criterion?
- correct answer Medium
What is the value associated with that decision? (Maximin, Medium)
- correct answer 40,000
Complete a regret table. Which decision would you make using the minimax criterion?
- correct answer Medium
List the values of the top row of your regret table with a space between each one.
- correct answer 0; 20,000; 60,000
