How is the desirability of the final outcome expressed?

• A. Probability
• B. Utility
• C. Expected value
• D. Cost

Answer: (B)

Desirability is captured by utility, a measure of satisfaction or personal preference assigned to outcomes. Utility translates different results into a numeric scale so you can compare how much each final outcome is liked or valued, even when they involve different magnitudes or risks. Probability tells you how likely something is, but not how much you want it. Expected value combines outcomes by their likelihood but doesn’t reflect personal preferences or risk attitudes. Cost relates to resources required, not how desirable the result feels. So utility is the best way to express how desirable a final outcome is.