The theory of expected utility theory
A) predicts all actions involving uncertainty.
B) predicts no actions involving uncertainty.
C) predicts some, but not all, actions involving uncertainty.
D) predicts only one in three actions involving uncertainty.

Question

Quizplus · Accepted Answer

Expected utility theory predicts some, but not all, actions involving uncertainty, as it assumes rational decision-making based on maximizing expected utility, but real-world decisions often deviate due to various factors like biases and incomplete information.

The Theory of Expected Utility Theory