Question options
A.I Only
B. II Only
C. I and II
D. II and III
E. I, II, and III
Answer:
D
Explanation:
The von neumann-mongenstern 1947 utility theorem also known as the VNM theorem describes the rational behaviour(VNM rationality) of an individual to choose from risky and probabilistic options based on expected utility value of that choice in the future. The theorem notes that an individual's preference will depend on the maximisation of expected utility which is based on four axioms that define the utility function called the VNM utility function.
