Wald's maximin model
Wald's Maximin model is like playing a game with your friends where you have to share a cake, but you don't know how big the cake is going to be. You want to make sure that you get the best piece of cake possible, but you also want to make sure that you don't get a tiny piece.
To solve this problem, you decide to play a game where you make a plan just in case the cake is really small. You pick the best piece of cake you can get if the cake is tiny. This is called your "maximin" plan because it maximizes the minimum size of the cake you could get.
Now, you're ready to play the game and see how big the cake actually is. If the cake is big, you're happy because you're going to get a big piece anyway. But if the cake is small, you're still happy because you have a plan and you know exactly which piece to pick.
In real life, we use Wald's Maximin model to make decisions when we don't know what's going to happen. It helps us pick the best plan for the worst-case scenario.
To solve this problem, you decide to play a game where you make a plan just in case the cake is really small. You pick the best piece of cake you can get if the cake is tiny. This is called your "maximin" plan because it maximizes the minimum size of the cake you could get.
Now, you're ready to play the game and see how big the cake actually is. If the cake is big, you're happy because you're going to get a big piece anyway. But if the cake is small, you're still happy because you have a plan and you know exactly which piece to pick.
In real life, we use Wald's Maximin model to make decisions when we don't know what's going to happen. It helps us pick the best plan for the worst-case scenario.