Problem
Recall the problem that Junior Larry faced in The Hillblom Estate at the end of Chapter 3. Consider the decision from Junior Larry's perspective.
Questions
1. Build a decision tree and calculate the expected value of continuing the case. What is the probability that Junior Larry will end up with nothing?
2. Run one-way and two-way sensitivity analyses on the decision tree. Which variables are the most influential? Why? Does the rank ordering of the alternatives ever change? If so, for which variables and at which values?
3. Based on your analysis, would you recommend that Junior Larry take the settlement or have the lawyers continue the case?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.