Multiple Choice
The key economic difference between expected utility and expected value is that
A) expected value only considers the value of outcomes, whereas expected utility considers the tradeoff between value and risk.
B) expected utility only considers the value of outcomes, whereas expected value considers the tradeoff between value and risk.
C) expected utility is the maximum value obtained, whereas expect value is the mean of the values from a set of possible outcomes.
D) None of the above-the differences are mathematical, not economic.
Correct Answer:
Verified
Correct Answer:
Verified
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