Consider the following pay-off (Profit) matrix Action States. | Action | $S_1$ | $S_2$ | $S_3$ | $S_4$ | | --- | --- | --- | --- | --- | | $A_1$ | 5 | 10 | 18 | 25 | | $A_2$ | 8 | 7 | 8 | 23 | | $A_3$ | 21 | 18 | 12 | 21 | | $A_4$ | 30 | 22 | 19 | 15 | Determine best action using maximin principle.

Consider the following pay-off (Profit) matrix Act – Class 12 Business Mathematics Statistics

Question 37 of 38

Consider the following pay-off (Profit) matrix Action States.

Action	$S_1$	$S_2$	$S_3$	$S_4$
$A_1$	5	10	18	25
$A_2$	8	7	8	23
$A_3$	21	18	12	21
$A_4$	30	22	19	15

Determine best action using maximin principle.

Puducherry TnboardTamil Nadu HSC (DGE) Commerce Board 2026Subjective· 2mImportance★★★★★

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Take the smallest pay-off in each row, then pick the row with the largest such minimum: that is $A_4$ with value $15$ .

The maximin criterion is used for decision-making under uncertainty by a cautious (pessimistic) decision-maker who guards against the worst outcome of each action.

Step 1 — Minimum pay-off (worst state) for each action:

Action	$S_1$	$S_2$	$S_3$	$S_4$	Row minimum
$A_1$	5	10	18	25	5
$A_2$	8	7	8	23	7

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