# Payoff and Opportunity Loss Tables

In the following payoff and opportunity loss tables circle and label the payoff or loss associated with the following decision-making criteria under uncertainty.

a. maximax

b. maximin

c. equally likely

d. minimax

Payoff Table

State of Nature

Alternatives A B Row Average

1 100 150 125

2 175 125 150

Opportunity Loss Table

State of Nature

Alternatives A B

1 75 0

2 0 25

https://brainmass.com/math/basic-algebra/payoff-opportunity-loss-tables-527785

#### Solution Preview

a. Maximax

The Maximax criterion looks at the best possible results. Maximax means 'maximize the maximum profit'.

State of Nature

Alternatives A B Maximum Profit

1 100 150 150

2 175 125 175

Hence the alternatives 2 would be chosen as the best decision using the maximax criterion

b. Maximin

The maximin decision rule suggests ...

#### Solution Summary

The solution provides step by step method for the calculation of decision-making criteria under uncertainty. Formula for the calculation and Interpretations of the results are also included.