Which of the following would best describes what is meant by "utility," according to the expected utility model?
A) The value of an outcome and the likelihood of it happening
B) The amount of money to be gained by a behavior
C) The usefulness of a given behavioral pattern
D) The product of an individual's goals and expectations

Question

Quizplus · Accepted Answer

According to the expected utility model, utility is a combined measure of the value of an outcome and the likelihood of it happening. The model assumes that people make decisions based on the expected utility of different options, with higher utility options being preferred. Therefore, option A best describes what is meant by "utility" in this context.

Which of the Following Would Best Describes What Is Meant