An aggressive decision maker might seek the option that holds the promise of minimizing the potential loss.For a minimization objective,this aggressive strategy is also often called a minimin strategy,that is,the decision that minimizes the minimum payoff is chosen.Aggressive decision makers are often called speculators,particularly in financial arenas because they increase their exposure to risk in hopes of increasing their return.A conservative decision maker,on the other hand,might take a more pessimistic attitude.Such a strategy is also known as a minimax strategy because the decision that corresponds to the minimum value of the largest cost is chosen.Conservative decision makers are often called risk averse and are willing to forgo potential returns in order to reduce their exposure to risk.
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In the box-and-whisker plot below,50% of the data is between 30 and 70.
A finance company paid a furniture retailer $1934 for a conditional sale contract requiring 12 end-of-month payments of $175. What effective rate of return does the finance company earn on the purchase?