Jay Blistan is suing the
manufacturer of his automobile for $3.5 million because of a defect
that he contends caused him to have an accident and kept him home
from work for a year. The manufacturer has offered to settle for
which he would receive $600,000 after his attorney’s fee ass
accounted for. His attorney has advised Jay that he has a 50%
chance of winning the case. If he loses, Jay will incur attorney
and court costs of $75,000. If he wins, he is not guaranteed the
full settlement amount. His attorney believes that there is a 50%
chance that he will realize two million and a 50% chance that he
will only realize one half of a million dollars. Develop and draw a
decision tree for Jay’s dilemma to help decide what Jay should do.
Please show how to solve/work and make a descision tree.
Please help, im getting confused and
would like to understand.
So far I have
I know im missing the amounts but
I’m pretty sure I have this wrong.
Please help and explain!