suggest(s) all alternatives can be rank-ordered from worst to best and that alternatives with highest expected values should be preferred.
A)Framing effects
B)The law of large numbers
C)The endowment effect
D)Expected utility theory
E)Bounded rationality theory

Question

Quizplus · Accepted Answer

Expected utility theory suggests that alternatives can be ranked according to their expected values and that those with the highest expected values should be preferred. This theory takes into consideration the probability of different outcomes and the potential utilities associated with each outcome. It is considered a rational decision-making approach and is often used in economics and finance.

Suggest(s) All Alternatives Can Be Rank-Ordered from Worst to Best