The Expected Value of an Option Is Dependent on the

question 13

Multiple Choice

The expected value of an option is dependent on the

• A) sum of the probability of an outcome and the utility of the outcome.
• B) product of the probability of an outcome and the utility of the outcome.
• C) difference between the probability of an outcome and the utility of the outcome.
• D) difference between the pros and cons of an outcome.

---

Definitions:

Abductor

A muscle whose contraction moves a limb or part away from the midline of the body or from another part.

Toward

In the direction of something or someone, indicating movement or orientation relative to a particular point or location.

Tenodynia

Pain in a tendon, often caused by overuse or inflammation.

Tendon

A tough band of fibrous connective tissue that usually connects muscle to bone and is capable of withstanding tension.