Hmm? I don't think an algorithm has to give "correct" answers, it just has to be precisely defined. For example, one could say "For this problem, a greedy algorithm yields decent but suboptimal answers."
Merriam-Webster online says: "a procedure for solving a mathematical problem (as of finding the greatest common divisor) in a finite number of steps that frequently involves repetition of an operation" and "broadly : a step-by-step procedure for solving a problem or accomplishing some end".
Algorithms solve problems. Wrong answers are not solutions to (i.e. do not solve) a given problem. Hence, algorithm implies that it provides correct answers within the parameters of the problem.
Disagree. We see this phenomena all the time: Right solution, bad input data. Right solution, wrong problem. Worlds turned to grey goo by replicators working to some technically correct algorithm.
The definition of algorithm is wider than you think. As your parent poster noted, "greedy algorithms" exist (as do many other algorithms which provide suboptimal answers). You can easily verify this by googling.