Process Management
Essay by sindhura2512 • November 1, 2015 • Coursework • 301 Words (2 Pages) • 962 Views
) EV (node3)= 0.5($2,000,000) + 0.5($500,000) = $1,250,000
EV (node2)= 0.5($1,250,000) + 0.5(-$75,000) = $587,500
c) For the final decision,
suit: $587,500
offer: $600,000
Since the higher value is $600,000, I recommend Mary to accept compensation from the car company which is $600,000 after the costs rather than suing the manufacturer.
) EV (node3)= 0.5($2,000,000) + 0.5($500,000) = $1,250,000
EV (node2)= 0.5($1,250,000) + 0.5(-$75,000) = $587,500
c) For the final decision,
suit: $587,500
offer: $600,000
Since the higher value is $600,000, I recommend Mary to accept compensation from the car company which is $600,000 after the costs rather than suing the manufacturer.
) EV (node3)= 0.5($2,000,000) + 0.5($500,000) = $1,250,000
EV (node2)= 0.5($1,250,000) + 0.5(-$75,000) = $587,500
c) For the final decision,
suit: $587,500
offer: $600,000
Since the higher value is $600,000, I recommend Mary to accept compensation from the car company which is $600,000 after the costs rather than suing the manufacturer.
) EV (node3)= 0.5($2,000,000) + 0.5($500,000) = $1,250,000
EV (node2)= 0.5($1,250,000) + 0.5(-$75,000) = $587,500
c) For the final decision,
suit: $587,500
offer: $600,000
Since the higher value is $600,000, I recommend Mary to accept compensation from the car company which is $600,000 after the costs rather than suing the manufacturer.
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