The sum of the utilities from each possible outcome of a situation weighted by the probability of that outcome is known as
A) expected utility.
B) total utility.
C) marginal utility.
D) expected value.

Question

Quizplus · Accepted Answer

Expected utility is the sum of the utilities from each possible outcome of a situation, each weighted by the probability of that outcome occurring.

The Sum of the Utilities from Each Possible Outcome of a Situation