Thus far, we have been concerned with situations in which positive as well as negative economic consequences can occur. When the consequences are all cost values, the same techniques can be applied...

Thus far, we have been concerned with situations in which positive as well as negative economic consequences can occur. When the consequences are all cost values, the same techniques can be applied provided that all cost figures are identified as being negative values (payouts). However, although cost figures are frequently identified as “costs,” they are reported as absolute values without the negative sign. In such a case, keep in mind that the minimum cost, rather than the maximum, is the “best” cost, and adjust the application of the various decision criteria accordingly. Using Table 18.20, determine the best act from the standpoint of the maxim in and of the maxim ax criterions by modifying the application of these criteria appropriately