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If a decision maker requires a higher payoff for a specific utility, what type of decision-making stance is being taken?

a. Risk-seeking
b. Risk-averse
c. Minimax regret
d. Expected value

1 Answer

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Final answer:

When a decision maker requires a higher payoff for a specific utility, they are taking a risk-seeking decision-making stance.

Step-by-step explanation:

The decision-making stance being taken when a decision maker requires a higher payoff for a specific utility is a. Risk-seeking. When someone is risk-seeking, they are willing to take on more risk to potentially gain a higher payoff. On the other hand, risk-averse individuals prefer lower risk and are more concerned with minimizing potential losses. Minimax regret is a decision-making strategy where the decision-maker minimizes the maximum regret they may experience. Expected value refers to the average value of an outcome weighted by its probability.

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