Question

For example, if Ken purchases a Sub 100 and if there is a favorable market, he will realize a profit of $300,000. On the other hand, if the market is unfavorable, Ken will suffer a loss of $200,000. But Ken has always been a very optimistic decision maker. What type of decision is Ken facing

Answer 1

Since Mr Bob is always a pessimistic decision maker, he might choose pessimistic criterion. Using pessimistic criterion, the third alternative, equipment Texan will provide the smallest potential loss; so the best alternative is purchasing equipment Texan.

Conclusion: It is likely that in this criterion, Bill will arrive at a different decision.