Utility function

Imagine you have a bag of candy and you can choose to eat one piece or save it for later. You have to decide if you want to eat it now or later. The choice you make depends on how much you like candy. Utility function is like a scale that measures how happy or satisfied you are with the choice you make based on your preferences.

For instance, some people like chocolate more than bubble gum. So, if given the choice, they will choose chocolate over bubble gum. But, how they feel about the choice depends on their preference – how much they like chocolate or bubble gum. In other words, their utility function measures how happy or satisfied they feel with the choice they make.

A utility function helps us to make choices by comparing the satisfaction we get from different options. It’s like a personal preference meter that lets us decide what we want based on our likes and dislikes. The choices we make can be influenced by different factors such as cost, quality, time, and more.

Think of it like having a personal happiness meter built inside you. It helps you choose what makes you feel most satisfied and fulfilled. So, when you are choosing between options, like what you want to eat or which toy you want to play with, you use your utility function to decide which one will make you happiest.