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.
E)None of the above

Question

Quizplus · Accepted Answer

The decision maker may have chosen Alternative 2 because it has a higher expected utility, meaning it may provide more satisfaction or benefit to the decision maker.

A Rational Decision Maker Must Choose Between Two Alternatives