Page 48 - APM Integrated Workbook STUDENT S18-J19

Chapter 2

3.5 Minimax regret

 Looks at maximum regret (opportunity cost) for each course of
action.

 Chooses the course of action that minimises this maximum
regret.

Suitability of tool for organisation

 Suitable if organisation does not want to make the wrong decision and miss
out.

 An approach for a sore loser.

 Risks making a lower profit.

38