Expected utility

Expected utility is a way of thinking about the decisions we make in life. The idea is that when we make a decision, we are trying to get the most out of it by looking ahead to the possible outcomes and seeing which one will make us the happiest. For example, if you want to buy a new car, you might compare different models and think about which one would be the most valuable to you. We're making these decisions based on the expected utility – the idea that we will be happiest with the one that gives us the most value. It's like trying to find the best deal; you are looking for the option that will give you the most satisfaction in the end.