Expected Utility (EU) Calculator

Calculate expected utility with this calculator. Enter amounts and probabilities of two assets to get an estimate of their combined value.

Result Expected Utility 0%

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Formula

Expected utility = ((probability1/100) * (amount1 ^ 0.5)) + ((probability2/100) * (amount2 ^ 0.5))

Example

probability1 = 80, amount1 = 200 probability2 = 30, amount2 = 1000 Expected utility = ((80/100) * (200 ^ 0.5)) + ((30/100) * (1000 ^ 0.5)) = 33.6 + 24.4949

Meaning

The Expected Utility (EU) calculator is a tool used to quantify the potential benefits and risks associated with different choices or actions. It helps individuals make informed decisions by evaluating the likelihood of various outcomes and assigning a value to each one. The purpose of this calculation is to provide a clear understanding of what can be expected from a particular choice, allowing for more rational decision-making.