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Dmitry [639]
3 years ago
8

What does the subjective utility of a decision involve?

English
1 answer:
kaheart [24]3 years ago
6 0

The correct answer is option A " The probability that the decision an individual makes will be the incorrect one". Subjective expected utility for decision making was first described and fully applied by  L. J. Savage in 1954. His theory is based in the decision-maker studying the probabilities of each outcome by analyzing the possibility of each outcome and its final utility. However, there is always the presence of a risk in Savage equation and for that it is always the probability that the decision could be the incorrect one.

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