A rational decision maker must choose between two alternatives.Alternative 1 has a higher EMV than Alternative 2, but the decision maker chooses Alternative 2.What might explain why this occurs?
A)Alternative 2 may have a higher expected utility.
B)Alternative 1 may have a lower expected opportunity loss.
C)The probabilities are not known.
D)A rational decision maker could not possibly choose alternative 2.

Question

Quizplus · Accepted Answer

A rational decision maker may choose Alternative 2 if it has a higher expected utility, meaning it provides more satisfaction or benefits to the decision maker, even if it has a lower EMV.

A Rational Decision Maker Must Choose Between Two Alternatives