Hi guys need help with F5, minimax regret
I was doing LSBF revision kit when I saw that what they taught there was to use the least opportunity loss right away from the Regret Table.
To my understanding, minimax regret is to minimax maximum regret. What I was taught in SAA to do was to see what is the maximum regret for each decision making between possible outcomes. And then from all the maximum regret, choose the least maximum regret. That way, we get minimise maximum regret.
I was so confused so I checked with BPP textbook. If I'm not wrong, I'm in line with BPP. Using a two step way to derive the minimax decision.
Attached is the Regret Table from the question I'm doing, which is correct.
As you can see, answer from LSBF picked project 3 which is the least opportunity cost
However from my working below, I would get project 4.
Please help I'm so confused to the max right now please minimise my confusion
