Asked by Michelle Mazur on Apr 24, 2024
Verified
Refer to the game in Scenario 13.6. What will occur if ERS Co. plays a maximin strategy?
A) -$100, -$1
B) $2, -$0.5
C) $1, -$1
D) -$0.5, -$0.5
E) There is a 0.25 chance of each outcome in that case.
Maximin Strategy
A decision rule which aims to maximize the minimum payoff attainable, often used under conditions of uncertainty.
Payoffs
The returns or benefits received from a particular action or investment.
- Determine the leading strategies employed by players in a game.
Verified Answer
ZK
Zybrea KnightMay 02, 2024
Final Answer :
D
Explanation :
A maximin strategy involves choosing the action that maximizes the minimum payoff achievable. In this scenario, choosing the option that ensures the least negative outcome for ERS Co. would result in a payoff of -$0.5 for both parties, which corresponds to option D.
Learning Objectives
- Determine the leading strategies employed by players in a game.