Expected utility is a concept in economics and decision theory where it represents a person's utility, on average, if they make a particular choice, taking into account all possible outcomes, their utilities, and the probabilities of these outcomes.

Solved

Expected Utility Is

Question 44

Multiple Choice

Expected utility is:

A) the utility level a person hopes to achieve if all goes as expected.
B) a person's utility, on average, if he or she makes a particular choice.
C) the average level of utility across a population.
D) the standard level of utility used to determine if a person is happier or less happy than anticipated.

Correct Answer: