Definition of expected utility in English:

expected utility

Syllabification: ex·pect·ed u·til·i·ty

noun

Mathematics & Economics
A predicted utility value for one of several options, calculated as the sum of the utility of every possible outcome each multiplied by the probability of its occurrence.
More example sentences
  • This is the key insight of expected utility theory - expected values and expected utility do not rank alternative gambles the same way.
  • Kitcher gives this claim some rigour by putting idealized, but reasonable, values on the probabilities and expected utilities of different strategies in the search for truth.
  • Roemer argues that if individuals maximize their expected utility on the insurance market, they insure against states in which they have low marginal utility.

Definition of expected utility in:

Get more from Oxford Dictionaries

Subscribe to remove adverts and access premium resources

Word of the day envenom
Pronunciation: ɪnˈvɛnəm
verb
put poison on or into; make poisonous