Component A: Demonstrating basic knowledge in DMA

Task $1$: Decision Tree

defend Mr Matt and decide what action to take regarding the lawsuit.

request a jury trial. Howard's lawyers spent some time exploring Samuel's likely reaction if they make a counteroffer of $$400,000.$

The lawyers concluded that it is adequate to consider three possible outcomes to represent Samuel's possible reaction to a counteroffer of $$400,000$ :

Samuel will accept the counteroffer and the case will be closed;

Samuel will reject the counteroffer and elect to have a jury decide the settlement amount; or

Samuel will make a counteroffer to Howard Ins. of $$600,000.$

case goes to a jury trial, Howard Ins. considers three outcomes possible:

The jury may reject Samuel's claim and Howard Ins. will not be required to pay any damages;

The jury will find in favour of Samuel and award him $$750,000$ in damages; or

The jury will conclude that Samuel has a strong case and award him the full amount of $$1,500,000.$

Now, perform an analysis of the problem facing Howard Insurance and prepare a report that summarises your findings and recommendations. Be sure to include the following items:

a$.$ A decision tree

b$.$ A recommendation regarding whether Howard Ins. should accept Samuel's initial offer to settle the claim for $$750,000$

c$.$ A decision strategy that Howard Ins. should follow if they decide to make Samuel a counteroffer of $$400,000$