in 1976, the parents of a seven year old boy sued a New York hospital for $3.5 million. the boy was blinded shortly after he was born two weeks premature. his parents claimed that hospital doctors administered excessive oxygen to the baby and that this caused the blindness. the case went to trialand just as the jusry announced it had reached a verdict, the lawyers for the two sides arrived at an out of court settlement of $500,000.
a. if you were the parents, how would you decide wether to accept the settlement or wait for the jury's decision?? what probability assessments would you need to make? would you have accepted the settlement??
b. answers the questions in part (a) but taking the hospital's point of view.