Question

For a maximization problem, the optimistic approach is often referred to as the

a. minimax approach
b. maximin approach
c. maximax approach
d. minimin approach

Answer 1

In a maximization problem, the optimistic strategy is called the maximax approach, which seeks to maximize potential gains under uncertainty.

Step-by-step explanation:

For a maximization problem, the optimistic approach is often referred to as the maximax approach. This decision-making strategy is utilized in situations of uncertainty where the decision-maker aims to maximize their potential payoff. Contrastingly, other approaches such as the minimax or maximin emphasize different strategies of dealing with uncertainty, focusing on minimizing potential losses or securing the best of the worst-case scenarios, respectively.

Maximax is an approach to a potential decision that attempts to maximize the potential return. If there is more than one potential outcome to a decision and the probability of each occurrence is not predictable or irrelevant to the decision-maker, this approach will simply look at the stated value of the outcome.