Situation no.

38

If you are a pessimist decision maker, what decision-making criterion is appropriate? Why?

Maximin / Leximin Criterion

"Maximin" means "Maximize the Minimum Payoff".

This criterion is appropriate for Pessimist persons. Using this criterion, the
decision-maker looks at the worst that can happen under each action and
then choose the action that has the largest payoff for the worst-case
scenario. he Decision-maker may believe in Murphy's law as "Anything that
can go wrong will go wrong".

Maximin is the pessimistic criterion. It assumes that the worst state of

nature will happen. The decision-making criterion selects the best of all
possible worst outcomes.