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This decision criteria has an objective of minimizing the maximum regret which can occur as a result of choosing a certain option and not the others.

This approach uses this formula;

Opportunity Loss (OL) = Maximum Payoff – Payoff under Each condition occurrence

The following steps are adhered to when determining the best alternative

*Step one;*

Identify the maximum payoff in each condition

*Step two;*

Subtract each payoff from the maximum payoff to determine the net amount

NB: Step two should be repeated for all categories of the conditions given

*Step three;*

Select the minimum value since it minimizes the maximum regret

**Example**

The sales manager is looking up to select the best price his company can use to sell its products.

So the decision to be made will be determined by Mini-Max Regret Criterion. Such that if given the following pay-off matrix;

Required, using Mini-Max Regret Criterion, show the correct alternative.

**Solution**

Price 10.30 is the alternative to go by for it minimizes the maximum regret