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August 24, 2020
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August 24, 2020

Hello I need to draw a decision tree for the question below You are a lawyer and one of your clients was hit by a car while crossing the street at a…

Hello I need to draw a decision tree for the question below

You are a lawyer and one of your clients was hit by a car while crossing the street at a crosswalk. Her injuries required medical treatment and her hospital stay incurred $10,000 in medical expenses. Although the long term prognosis is for a full recovery, there is some chance of permanent damage. Your client has been advised by medical staff, if her pain continues, to return for further examination.

Just after leaving the hospital, your client received an offer from the driver’s insurance company for $100,000 to settle any claims arising from the accident.

If she accepts the offer she will receive the $100,000 immediately and will be required to sign away any rights to more damages in the future. If she refuses the offer, she can sue and take the insurance company to trial. Her trial costs will be $10,000. The probability that she will win in court is 90%. If she wins, there is a 20% probability she will be awarded $400,000 and an 80% probability she will be awarded $25,000 in damages.

Thanks

Monica

 

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Hello I need to draw a decision tree for the question below You are a lawyer and one of your clients was hit by a car while crossing the street at a… was first posted on August 24, 2020 at 10:08 am.
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