The concept of utility can be helpful to apply decision analysis techniques to situations which do not lend themselves to expected monetary value analysis.

Question

Quizplus · Accepted Answer

Utility theory allows decision-makers to consider subjective preferences and attitudes towards outcomes that cannot simply be quantified in monetary terms. This makes it a useful tool for decision analysis in situations where the value of outcomes cannot be easily expressed in financial terms.

The Concept of Utility Can Be Helpful to Apply Decision