The Hurwicz criterion is a compromise between the maximax and maximin criteria.Group of answer choicesTrueFalse

Answer

The statement is True.

The Hurwicz criterion is indeed a compromise between the maximax and maximin criteria in decision-making under uncertainty. The maximax criterion focuses on the maximum possible payoff, which is suitable for highly optimistic decision-makers, while the maximin criterion emphasizes the minimum possible payoff, appealing to those who are more risk-averse. The Hurwicz criterion introduces a coefficient of optimism (often denoted as α), allowing decision-makers to balance between optimism (towards maximax) and pessimism (towards maximin). By choosing a value for α between 0 and 1, the Hurwicz criterion provides a more versatile approach in uncertain situations, making the statement accurate.