Decision Tree Problems
You have sued your employer for wrongful termination. They are offering a settlement of $70,000. The alternative is to go to trial, at a cost of $20,000. Your lawyer tells you that there are two possibilities: (i) you win, in which case you can expect an award of S100,000, or (ii) you lose, in which case you get nothing. She thinks that there is a 60% chance that you will win
• List the options that you have and the possible outcomes.
• If all you care about is your expected wealth (and prefer more wealth to less), find the optimal decision.
The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.