A home insurance company offers us compensation for hurricane damage of $30,000.00. If we do not accept the offer and try to appeal or go to trial we can obtain $18,000.00, $15,000.00 or $10,000.00, depending on the allegations that the judge considers acceptable. If we lose the lawsuit, we must pay costs that increase to $5,000.00. Knowing that 65% of trials are won, and of these, in 60% the lowest compensation is obtained, in 25% the intermediate and in 15% the highest, determine the most correct decision. Build the decision diagram.

Answer rating: 100% (QA)

To determine the most correct decision we can build a decision diagram as follows 1 Accept the offer ... View the full answer