Expected utility is a concept in economics and decision theory that helps individuals make choices under uncertainty. It suggests that people evaluate the potential outcomes of their decisions by considering both the value of each outcome and the probability of it occurring. By calculating the expected utility, individuals can determine which option offers the highest overall satisfaction or benefit. This approach is often used in various fields, including finance and psychology, to analyze risk-taking behavior. The idea is that individuals will choose the option with the highest expected utility, balancing potential rewards against the risks involved in choices, such as investments or gambling.