This thread is for asking any questions that might seem obvious, tangential, silly or what-have-you. Don't be shy, everyone has holes in their knowledge, though the fewer and the smaller we can make them, the better.
Please be respectful of other people's admitting ignorance and don't mock them for it, as they're doing a noble thing.
To any future monthly posters of SQ threads, please remember to add the "stupid_questions" tag.
Is the term 'expected value' interchangeable with the term 'expected utility?'
No. "Expected value" refers to the expectation of a variable under a probability distribution, whereas "expected utility" refers specifically to the expectation of a utility function under a probability distribution. That is, expected utility is a specific instantiation of an expected value; expected value is more general than expected utility and can refer to things other than utility.
The importance of this distinction often arises when considering the utility of large sums of money: a person may well decline a deal or gamble with posi... (read more)