This regret matrix gives potential dollar values in thousands for strategies S1, S2, S3, and S4 for Al's Fish Fry and competitive strategies CA1, CA2, and CA3 for Sal's Fish Bake. If Al chooses S3, what kind of strategy is he using?
CA1 CA2 CA3
S1 3 15 9
S2 12 10 12
S3 8 9 17
S4 13 16 3
A) minimax
B) maximin
C) maximax
D) minimin
Answer: C
Explanation: Al has chosen the strategy that has the highest maximum regret value. Therefore, he has maximized the maximum regret value, or gone for the maximax strategy. This strategy does not make sense for most serious-minded managers.
Business
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