Uncertainty Uncertainty is when the outcomes are not certain and you are unable to estimate probabilities, but you use your psychological orientation to make decision. If you are optimistic you would make a “maximax” choice. If you are generally a pessimist, you would make a “maximin” choice. You also can make a choice that minimizes your maximum “regret” or make a minimax choice. Use the following information and determine what would be your three choices based on the three psychological orientations (maximax, maximin, and minimax). Show all work. Payoff Table Response: R1 R2 R3 Strategy: S1 22 12 11 S2 20 15 15 S3 14 16 25 S4 19 21 26 Maximax: Optimistic ANSWER: Response: R1 R2 R3 Strategy: S1 S2 S3 S4 Maximin: Pessimistic ANSWER: Response: R1 R2 R3 Strategy: S1 S2 S3 S4 Minimax: Regret Matrix ANSWER: Response: R1 R2 R3 Strategy: S1 S2 S3 S4 Response: R1 R2 R3 Strategy: S1 S2 S3 S4