A person's utility is determined by the preferences he/she exhibits for decision choices involving __________.
A)Certainty
B)Uncertainty
C)Risk
D)Bayes' Theorem

Question

Quizplus · Accepted Answer

Utility theory is concerned with how people make choices under conditions of uncertainty or risk. Therefore, the correct answer is option C, risk. Certainty and uncertainty are aspects of risk, and Bayes' theorem is a mathematical tool that helps update probabilities based on new information in probabilistic reasoning. However, none of these alone determines a person's utility.

A Person's Utility Is Determined by the Preferences He/she Exhibits