A choice with two possible outcomes is being considered. The expected utility of that choice is equal to:
A) (Utility of outcome 1 + Utility of outcome 2) / 2.
B) ((Probability of outcome 1) × (Utility of outcome 1) ) + ((Probability of outcome 2) × (Utility of outcome 2) ) .
C) ((Probability of outcome 1) - (Utility of outcome 1) ) + ((Probability of outcome 2) - (Utility of outcome 2) ) .
D) (Utility of outcome 1 / Probability of outcome 1) + (Utility of outcome 2 / Probability of outcome 2) .
Correct Answer:
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