Which of the Following Statement Is FALSE About the Expected

Multiple Choice

Which of the following statement is FALSE about the expected value approach to make decisions under risk?

A) It assumes that the decision maker is rational and will choose the optimum decision with the highest expected value.
B) It ignores the elements other than monetary profits.
C) It takes irrational factors into consideration.
D) It ignores factors such as quality of life or the current monetary status of the decision maker.