Authors

  • Zilolaxon Mamatova
    Fergana​ State University
  • Mohinur Azimjonova
    Fergana​ State University

DOI:

https://doi.org/10.71337/inlibrary.uz.ijai.86046

Abstract

Decision-making under risk refers to the consideration of risk in decision-making

processes. The Laplace criterion is a method that considers probabilities equal and calculates the average value of each option for each possible situation. The minimax criterion aims to minimize the worst-case scenario under risk. The maxmin criterion is the inverse of the minimax approach. The Savage criterion aims to consider the average and worst-case scenarios in terms of risk in decision-making. The Hurwitz criterion aims to reduce the uncertainty between the average and worst-case scenarios under risk. The approaches presented in this article show what methods can be used in decision-making under risk.


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INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE

ISSN: 2692-5206, Impact Factor: 12,23

American Academic publishers, volume 05, issue 04,2025

Journal:

https://www.academicpublishers.org/journals/index.php/ijai

page 1199

SOLUTION UNDER RISK CONDITIONS: LAPLAS CRITERION. MINIMAX AND

MAXMIN CRITERION. SAVAGE AND HURWITZ CRITERIA

Mamatova Zilolaxon Khabibullokhonovna

Associate Professor, Doctor of Philosophy (PhD) in Pedagogical Sciences,

Fergana State University

Orchid : 0009-0009-9247-3510

E-mail:

mamatova.zilolakhon@gmail.com

Azimjonova Mohinur Asiljon kizi

Fergana​ State University Practical mathematics 3rd year student , group 22-08 student

Email:

azimjonovamohinur88@gmail.com

Abstract

: Decision-making under risk refers to the consideration of risk in decision-making

processes. The Laplace criterion is a method that considers probabilities equal and calculates

the average value of each option for each possible situation. The minimax criterion aims to

minimize the worst-case scenario under risk. The maxmin criterion is the inverse of the

minimax approach. The Savage criterion aims to consider the average and worst-case

scenarios in terms of risk in decision-making. The Hurwitz criterion aims to reduce the

uncertainty between the average and worst-case scenarios under risk. The approaches

presented in this article show what methods can be used in decision-making under risk.

Keywords:

Risk, decision making, Laplace criterion, minimax criterion, maxmin criterion,

Savage criterion, Hurwitz criterion, uncertainty, probabilities, decision making.

Introduction .

Processes research and optimal management – decision acceptance to do and

systems to optimize scientific fields oriented .​

1-Process research resources effective distribution for mathematician models , linear

programming , games​ theory and networks optimization such as from methods uses .

2-Optimal management systems the most good management strategies determination with He

is engaged in his work . main methods Pontryagin's Maximum principle and Bellman's

dynamic programming .

Risk-taking under the circumstances solution acceptance to do , to do a lot in fields including

economics , management , engineering​ and other technician in the fields wide This topic is

used according to literature various methods and approaches offer it will , this and decision

acceptance to do in the process risk-taking how to manage to study help gives . References

analysis following criteria based on take Let's go : Laplace criterion , Minimax criterion ,

Maximin criterion , Savage criterion and Hurwitz criterion .. Laplace criterion risk under the

circumstances decision acceptance to do the most simple and wide widespread from the

methods Laplace (1814) defined risk as equal distribution hypothesis does and all of

circumstances probabilities He considers all​ ​

possible was​

situations for of values

average value to calculate and the most high average to value has was option to choose

provides . Minimax criterion decision acceptance in doing the most inconvenient the situation

to minimize This approach is aimed at main purpose , decision acceptance doer for the most

bad the results the most less to the level von Neumann​ and Morgenstern (1944) in their "


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INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE

ISSN: 2692-5206, Impact Factor: 12,23

American Academic publishers, volume 05, issue 04,2025

Journal:

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page 1200

Theory in the work " Games " minimax approach game theory within current those who have

reached.Maxmin criterion minimax approach reverse approach decided​ ​ acceptance doer

every one option the most good in the state value This method​ main advantage is that the

decision acceptance doer the most good the situation to take strives . Savage criterion

decision acceptance in doing average​ and bad situations in consideration to take goal This

method is mainly used to determine acceptance the one who does risk level to balance Savage

( 1950 ) in his method risk relief , average the value maximum to do aimed at strategy 5.

Hurwitz criterion risk to minimize aimed at from methods He is a risk taker . relief for

average​ and bad situations between the difference tries to alleviate . Gurvitz (1956) in his

criterion risk and uncertainty alleviate for working came out .

This study aims to explore effective methods for making decisions in risky situations. The

study methodology theoretical analysis , mathematics modeling , comparison analysis and

experimental analysis own​

inside Research​ ​

during literature analysis through risk

under the circumstances decision acceptance to do according to there is scientific sources and

methods Laplace , Minimax , Maxmin , Savage​ ​

and Hurwitz criteria such as various

approaches analysis will be done and their risk-taking in management efficiency is studied. In

the study mathematician modeling methods using risk under the circumstances decision

acceptance to do processes simulation In these processes probability distributions , risk and

uncertainties in consideration is taken . Simplex method , graphic method and other modeling

methods using decision acceptance to do process optimization opportunities analysis

Comparative​ ​

analysis through various methods compared and their efficiency is

determined . Experimental analysis methodology theoretical shaped risk under the

circumstances solution acceptance to do of the plan to practice implementation to be and the

results to study In this process methods using solutions learned , risk - taking management

the most effective methods working This is​

methods using risk under the circumstances

decision acceptance to do process improve and economic efficiency increase possible .

Analyses and results

Optional the process research to grow during decision ( solution )​ to do right​ comes . In

this case , the solution acceptance to do how in the situation : m data full​

or full it's not

being important are , they are two opposite situations represents . Of these in the middle was

again one situation There is something called risk . In this event​

to give possible was of

circumstances probability , or their distribution functions given It can also be . For example ,

in the market any to the product was​

price accuracy under the circumstances unchanged

stands , risk under the circumstances and it is random quantity become , change law

distribution function through given will be , uncertainty under the circumstances and it is

random quantity is , its change legality or not given , or in general clearly It won't be . But

uncertainty under the circumstances information no​

means , this only random of the

amount surrender to the law relatively said is , its acceptance to do values ( cases) complex ,

situations set ) in advance known will be . The data surrender to the level Depending on the

issue , the given issue is also different. For example , the above in the example : clear under

the circumstances , accepted made solution quality gone cost express through ( criterion )

possible , risk under the circumstances and price random quantity to be , to be into account

received without criterion to compose need will be , uncertainty under the circumstances and

the price about information absolutely unknown is , above clear generally support the

criteria​ It will not be . These considerations shows that the data indeterminacy increasing

progress criterion both choice and solution acceptance to do making the issue even more


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INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE

ISSN: 2692-5206, Impact Factor: 12,23

American Academic publishers, volume 05, issue 04,2025

Journal:

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page 1201

difficult , and generally , firmly reliable to the results take doesn't come . So so , accuracy

under the circumstances criterion to compose no how difficulty It doesn't work , but it's risky.

and uncertainty under the circumstances and various criteria are used . Their no one flawless ,

without flaw​ without counting , only various in appearance was requirements satisfaction

with The issue under consideration is twofold . participatory to the game cited is the second

participant " unconscious " opponent as acceptance if done , such game nature with is called a

game . Such of the game the most important side : nature various situations brought release

with , it is this of circumstances which one event from giving interested not . Nature with

game​

in the matter main problem-to-goal directed criterion determination and to him/her

relatively optimal solution is to find . If the in the matter second participant conscious

opponent , suppose if done , this situation controversial with him​ games theory is engaged

in .

To the topic issue​

If an investor buys shares or other to assets investment want to enter If so , he is taking the

risk. in consideration take it , take it financial status and of the market future status guess For

example , high​

risk-taking has was​

startup company's to shares investment input is​

decision , investor risk acceptance to do depends .

Investments risk under the circumstances decision acceptance to do methods various kind

methodologies own​ inside takes.Ush this issue Laplace , Minimax , Maxmin , Savage and

Hurwitz criteria using analysis We try to do it . Every criterion risk and risks management

methods to oneself typical in a way illuminates . Now and every one method seeing we go

out :

1. Laplace criterion:

Laplace criterion is​ all possible was situations for probabilities equal

if , decision acceptance to do method . That is , every one of the situation probability one

suppose that different will be done .

Issue: Investor to shares investment input according to decision acceptance The investor is

choice :

Action 1: Year 60% increase at the end or 20% reduction probabilities there is .

Actions 2: Year 30% increase at the end or 10% reduction probabilities there is .

This is an investor situations for probability considers equal ( i.e. , every​

one 0.5

probability for ). So , Laplace to the criterion According to the average investor income

calculating comes out .
Action 1: 1

1

(

60%) (

( 20)) 30% 10% 20%

2

2

*

+

* -

=

-

=

( Average​ income )

Actions 2: 1

1

(

30%) (

( 10)) 15% 5% 10%

2

2

*

+

* -

=

-

=

( Average​ income )

Laplace criterion The investor chooses Stock 1 because​ ​ ​

this average income high

does .

2. Minimax criterion

: Minimax criterion the decision the most bad in case acceptance to do

emphasizes , that is the most bad probably based on , most less damage causing option

selection .

Issue:

Action 1: Year 60% increase at the end or a 20% decrease .

Actions 2: Year 30% increase at the end or a 10% decrease .

Each​ option the most bad to the state let's see :


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INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE

ISSN: 2692-5206, Impact Factor: 12,23

American Academic publishers, volume 05, issue 04,2025

Journal:

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page 1202

Action 1: The most bad status - 20% decrease .

Actions 2: The most bad status - 10% decrease .

Minimax to the criterion Therefore , the investor chooses Stock 2 because​

this the most

bad in case less damage brings (-10%).

3. Maxmin criterion

: Maximin criterion is​ decision acceptance in doing , every for one

option the most good the situation choice and from them the most above choice is a method .

Issue:

Action 1: Year 60% increase at the end or a 20% decrease .

Actions 2: Year 30% increase at the end or a 10% decrease .

Each​ option the most good status seeing​ we go out :

Action 1: The most good status - 60 % increase .

Actions 2: The most good status - 30 % increase .

Maxmin to the criterion Therefore , the investor chooses Stock 1 because​

this the most

good in case the most high growth presented reaches (60%).

4. Savage Criterion

: Savage criterion risk-taking relatively conservative approach In this

method , the investor himself acceptance to do possible was the danger into account takes and

probability into account take the most cautious option chooses .

Issue:

Action 1: Year 60% increase at the end or a 20% decrease .

Actions 2: Year 30% increase at the end or a 10% decrease .

this method, the investor calculates probabilities seeing​ comes out and from them the most

conservative the situation For example , select Actions 2​ ​ possible , because this decrease

probability smaller and danger decreased .

5. Hurwitz criterion:

Hurwitz criterion probabilities optimistic and pessimistic values with

compare this​ two the situation average This is mainly due to the risk relatively balanced

approach provides .

Issue:

Action 1: Year 60% increase at the end or a 20% decrease .

Actions 2: Year 30% increase at the end or a 10% decrease .

Hurwitz criterion according to , each one situation for the most optimistic ( good ) and

pessimistic ( bad ) probabilities seeing we will go out and average to take let's count .
Action 1: Average​ value = 60% ( 20%) 20%

2

+ -

=

Actions 2: Average​ value = 30% ( 10%) 10%

2

+ -

=

Hurwitz criterion by , Select Actions 1​ ​

acceptable will be , because his/her average

value high (20%).

Final analysis

Laplace Criteria : Promotions 1

Minimax Criteria : Promotions 2

Maxmin Criteria : Promotions 1

Savage Criteria : Actions 2

Hurwitz Criteria : Promotions 1


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INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE

ISSN: 2692-5206, Impact Factor: 12,23

American Academic publishers, volume 05, issue 04,2025

Journal:

https://www.academicpublishers.org/journals/index.php/ijai

page 1203

Decision acceptance in doing every one criterion various kind approaches presented will be ,

and the investor will risks how acceptance to do and probabilities how evaluation choice

need .

Conclusion

Risk-taking under the circumstances decision acceptance in doing used methods and criteria

about many​

research available . Laplace criterion simple and equal probabilities into

account received without effective works , but there are inaccuracies high was​

in cases

limitation possible . Minimax and Maxmin criteria decision acceptance the one who does the

most inconvenient or the most good situations into account to take focused on . Savage

criterion and Hurwitz criterion and , risk into account take , average​

and bad situations

between the difference to minimize is focused on . Each of the method to oneself typical

advantages and disadvantages there is are , they are various under the circumstances decision

acceptance in doing usage possible .

Literature:

1. L. Kantorovich - " Mathematician programming and economic analysis " (1959).

Production release optimal plan in processes to compose and resources distribution

methods statement done .

2. G. Dantzig - " Linear programming and his/her applications " (1963). Simplex method

and make it real release to the conditions application​ issues illuminated .

3. R. Dorfman, P. Samuelson, R. Solow - " Linear programming and economic analysis "

(1958). Optimal planning , constraints and goal function based on decision acceptance to

do discussion made .

4. IG Bashmakov - "Optimal working release systems " (2005). Modern working release

processes to optimize related theoretical and practical approaches showing​ given .

5. GN Nemchinov - " Linear " economic models " (1972). Economic in systems linear

programming and analysis methods to use dedicated .

References

L. Kantorovich - " Mathematician programming and economic analysis " (1959). Production release optimal plan in processes to compose and resources distribution methods statement done .

G. Dantzig - " Linear programming and his/her applications " (1963). Simplex method and make it real release to the conditions application​ issues illuminated .

R. Dorfman, P. Samuelson, R. Solow - " Linear programming and economic analysis " (1958). Optimal planning , constraints and goal function based on decision acceptance to do discussion made .

IG Bashmakov - "Optimal working release systems " (2005). Modern working release processes to optimize related theoretical and practical approaches showing​ given .

GN Nemchinov - " Linear " economic models " (1972). Economic in systems linear programming and analysis methods to use dedicated .

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