What is minimax criterion in decision making?
Min-max criterion – is a decision-making criterion presented in 1954 by Leonard Savage. This criterion minimizes the expected loss associated with making worse than optimal decision, for a given state of nature.
What is Max Min criterion?
Maxi-min Criterion (Optimistic View): In the maximin criterion the decision maker selects the decision that will reflect the maximum of the minimum payoffs; a pessimistic criterion. For each action choose min. Choose the action which has the max.
What decision can be taken using Maximax criterion?
Maximax is the criterion used by a decision maker who chooses the act which makes possible the maximum payoff. If the payoff table contains losses rather than profits, the maximax decision maker would choose the act which would make possible the minimum loss.
What is maximin criterion in decision making?
The Maximin criterion is a pessimistic approach. It suggests that the decision maker examines only the minimum payoffs of alternatives and chooses the alternative whose outcome is the least bad.
How do you use minimax criterion?
Minimax Criterion You take the largest loss under each action (largest number in each column). You then take the smallest of these (it is loss, afterall). The largest losses if you buy 20, 40, 60, and 80 bicycles are $1980, 1160, 700, and 1020 respectively.
What is a minimax model?
In game theory, minimax is a decision rule used to minimize the worst-case potential loss; in other words, a player considers all of the best opponent responses to his strategies, and selects the strategy such that the opponent’s best strategy gives a payoff as large as possible.
What is Maximin Criterion example?
Maximin Criterion Except instead of taking the largest number under each action, you take the smallest payoff under each action (smallest number in each column). You then take the best (largest of these). The smallest payoff if you buy 20, 40, 60, and 80 bicycles are $50, -330, -650, and -970 respectively.
What is maximin Criterion example?