The concept of utility is central to Normative models of decision making. Which normative model acknowledges that the values individual assigns to potential outcomes may be unique and dependent on their particular goals?
A) Expected Value Theory
B) Multiattribute Utility Theory
C) Subjective Expected Utility
D) Objective Expected Utility

Question

Quizplus · Accepted Answer

Multiattribute Utility Theory acknowledges that individuals may assign unique values to potential outcomes based on their specific goals or preferences. Expected Value Theory and Objective Expected Utility assume that individuals have a universal set of values for potential outcomes, while Subjective Expected Utility takes into account an individual's beliefs about the likelihood of different outcomes.

The Concept of Utility Is Central to Normative Models of Decision