A surgeon is involved in a $3 million malpractice suit. He can either settle out of court for $750,000 or go to court. If he goes to court and loses, he must pay $2,500,000 plus $500,000 in court costs. If he wins in court the plaintiffs pay the court costs. Identify the actions of this decision-making problem
a. Two choices: (1) go to court and (2) settle out of court.
b. Two choices: (1) win the case in court and (2) lose the case in court.
c. Four consequences resulting from Go/Settle and Win/Lose combinations.
d. The amount of money paid by the doctor.
A
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