In choices involving risk, an individual chooses:
A)the choice with the highest probability of winning.
B)the option with the largest monetary value.
C)the choice with the lowest probability of loss.
D)the choice that yields the largest expected utility.

Question

Quizplus · Accepted Answer

The best choice when facing a decision under risk is the one that yields the largest expected utility, which takes into account both the probability of winning or losing and the individual's preferences or values. Simply choosing based on the probability of winning (A), the monetary value (B), or the probability of loss (C) does not necessarily lead to the best outcome for the individual.

In Choices Involving Risk, an Individual Chooses