Home » IIA » IIA-CIA-Part3 » If the bank uses the maximax criterion for selecting the location of the branch, it will select:
If the bank uses the maximax criterion for selecting the location of the branch, it will select:
A. L1.
B. L2.
C. L3.
D. L5.
Correct Answer: D
Explanation/Reference:
Explanation:
Risk-seeking, optimistic decision makers employ the maximax criterion. It is the strategy with the highest potential payoff, regardless of the state of nature. In this case, it is location L5 (US $29). "
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