What does the equation mean based on expected utility theory

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Problem 1: We have a guest who needs to choose between 1) two room upgrades plus one dinner at a hotel and 2) one room upgrade plus two dinners at the same hotel. What does the equation, u(two room upgrades, one dinner) & (one room upgrade, two dinners), mean based on expected utility theory?

a. This guest prefers 1) to 2).
b. This guest prefers 2) to 1).
c. This guest is indifferent between 1) and 2).
d. This guest cannot decide.

Reference no: EM133009481

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