The expected utility theory
A) predicts all actions involving uncertainty.
B) predicts no actions involving uncertainty.
C) predicts some, but not all, actions involving uncertainty.
D) predicts only one in three actions involving uncertainty.

Question

Quizplus · Accepted Answer

The expected utility theory is a decision-making theory that predicts some, but not all, actions involving uncertainty. It suggests that individuals make decisions based on the potential outcomes of their choices and the perceived likelihood of those outcomes. However, not all decisions can be predicted by this theory, particularly those that involve complex or emotional factors.

The Expected Utility Theory