Research Article
Risk Navigator SRM: An Applied Risk Management Tool
Table 4
Attributes of basic decision rules.
| Decision Rule | Mean | Variation | Low | High | Other |
| Maximized Expected Value—Choose alternative with highest expected value | | | | | | Maximax—Choose alternative with best outcome | | | | | | Most Likely—Choose alternative that is most likely to occur (subjective) | | | | | | Minimax Regret—Choose alternative with least hindsight regret | | | | | | Hurwicz—Weighted average of maximax and minimax | | | | | | Maximin—Choose alternative with best of the worst outcomes | | | | | | Laplace—Simple average | | | | | |
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See a more detailed description in [6]. An is placed in the column where the rule is primarily focused.
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