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Hello,
I watched the minimax rule video on youtube.
I understood the concept, that is if the decision maker is a risk avoider he tends to choose the best choice among the worst outcome results as per the question which was dealing with possible profits.
My question is what if you are a risk avoider and you are now dealing with costs instead of possible profits, will you choose the least or highest cost options? And is it from the worst or best outcomes?As a risk avoider, when dealing with costs instead of possible profits, you would typically choose the option with the least cost.
This is because as a risk avoider, you prioritise minimising potential losses or negative outcomes.
In this case, the worst outcome would be incurring higher costs, so you would choose the option that minimises the potential for higher costs.
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