The _____ of a choice is the weighted average of all possible utility levels, where the weights on each possible value correspond to the probability of that value occurring.

Question

Quizplus · Accepted Answer

The statement describes the concept of expected utility, which is commonly used in decision theory to determine the best choice under conditions of risk or uncertainty. Expected utility involves considering all possible outcomes of a decision, assigning probabilities to each outcome, and then finding the sum of the products of each probability and utility value. The choice with the highest expected utility is considered the best option. Therefore, the best choice in this scenario would be the one with the highest expected utility.

The _____ of a Choice Is the Weighted Average of All