People prefer certain outcomes Studies find that most people prefer certain payouts over uncertain scenarios If a student says he prefers uncertain option, what does that imply about his utility function? To answer this question,we need to define expected utility for a lottery or uncertain outcome. Bhattacharya,Hyde and Tu-HealthEconomics Bhattacharya, Hyde and Tu – Health Economics People prefer certain outcomes  Studies find that most people prefer certain payouts over uncertain scenarios  If a student says he prefers uncertain option, what does that imply about his utility function?  To answer this question, we need to define expected utility for a lottery or uncertain outcome