Expected Utility The expected utility from a random payout X E[U(X)]is the sum of the utility from each of the possible outcomes,weighted by each outcome's probability. If the outcomes are x,X2,...,Xn,and the probabilities for each outcome are p,,P2,...,Pn respectively,then: ▣E[U(X)]=PU(x)+P2U(x2)+·+PnU(xn) Bhattacharya,Hyde and Tu-HealthEconomicsBhattacharya, Hyde and Tu – Health Economics Expected Utility  The expected utility from a random payout X E[U(X)]is the sum of the utility from each of the possible outcomes, weighted by each outcome’s probability.  If the outcomes are x1 , x2 , . . . , xn , and the probabilities for each outcome are p1 , p2 , . . . , pn respectively, then:  E[U(X)] = p1 U(x1 ) + p2 U(x2 ) + · · · + pn U(xn )