Premium Airlines has recently offered to settle claims for a class-action suit, which was originated for alleged

Question:

Premium Airlines has recently offered to settle claims for a class-action suit, which was originated for alleged price fixing of tickets. The proposed settlement is stated as follows:
Initially, Premium Airlines will make available to the settlement class a main fund of $25 million in coupons. If the number of valid claims submitted is 1.25 million or fewer, the value of each claim will be the result obtained by dividing $25 million by the total number of valid claims submitted. For example, if there are 500,000 valid claims, each person submitting a valid claim will receive a with a value of $50.
The denomination of each distributed will be in a whole dollar amount not to exceed $50. Thus, if there are fewer than 500,000 valid claims, the value of each claim will be divided among two coupons or more. For example, if there are 250,000 valid claims, each person submitting a valid claim will receive two coupons, each having a of $50, for a total value of $100.
If the number of valid claims submitted is between 1.25 million and 1.5 million, Premium Airlines will make available a supplemental fund of coupons, with a potential value of $5 million. The supplemental fund will be made available to the extent necessary to provide one $20 for each valid claim.
If there are more than 1.5 million valid claims, the total amount of the main fund and the supplemental fund, $30 million, will be divided evenly to produce one for each valid claim.
The value of each such will be $30 million divided by the total number of valid claims. Draw a decision tree for the Premium Airlines settlement.

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...