Mathematics, 09.10.2021 06:10 leapfroggiez
Consider the following scenario:
In a product liability case, a company can settle out-of-court for a loss of $400,000. If they go to
trial, they will lose $1,250,000 if found liable (guilty) and nothing if found not guilty. Lawyers for the
company Festimate the probability of a not-guilty verdict at 0.8.
What is the expected value for this secnario?
Answers: 2
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Consider the following scenario:
In a product liability case, a company can settle out-of-court fo...
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