Anonymous
Anonymous asked in Social ScienceEconomics · 4 weeks ago

Expected utility?

James like chocolate ice cream better than mango, but likes vanilla the most. If he's trying to maximize utility, which offer should he expect?

A 75 percent chance of getting vanilla and 30 percent chance of getting nothing OR

50 percent chance of getting both vanilla or mango OR

neither?

1 Answer

Relevance
  • Oiy
    Lv 6
    4 weeks ago

    A is the right answer. Otherwise,it should be a minimization.

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