Discussion
What is the principle of maximum expected utility?
Answer: C
The principle weighs each possible outcome by its probability and its utility and selects the action whose average is greatest, which follows from a small set of axioms about consistent preferences. Considering only the most likely outcome ignores rare catastrophes, avoiding bad worst cases is the more conservative minimax criterion, and ignoring probability abandons the uncertainty altogether. A decision rule derivable from axioms about preference is on firmer ground than one adopted by intuition.
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