A student is trying to decide whether to go to a party or to stay home and study. He decides that he might as well go to the party since he is unlikely to get the A that he needs to pass the class. He is making use of:

Question

Quizplus · Accepted Answer

Expected utility is a decision-making theory that takes into account the probability of different outcomes and the value of those outcomes. In this case, the student is considering the probability of getting an A and the value of getting an A (passing the class) versus the value of going to the party.

A Student Is Trying to Decide Whether to Go to a Party