Equations: EV(expected value)=P(outcome 1)+(1-P)(outcome 2) EU(expected utility)=P(√(outcome 1))+(1-P)(√(outcome 2))
Difference between Value and Utility
· 4 min read
Equations: EV(expected value)=P(outcome 1)+(1-P)(outcome 2) EU(expected utility)=P(√(outcome 1))+(1-P)(√(outcome 2))