A manager has developed a payoff table that indicates the profits associated with a set of alternatives under 2 possible states of nature:
Alternative Situation 1 Situation 2
1 10 2
2 -2 8
3 8 5
If the manager uses minimax regret as the decision criterion, which of the alternatives would be indicated?
The solution provides step by step method for the preparation of minimax regret pay off table and helps to take decision on the basis of minimax regret decision criterion.