E$.$ The Pioneer Software Company has developed software for organizing and

playing music on a computer. The software contains a number of unique features

that have been patented so the company's future has looked bright.

However, it appears that a number of the patented features were copied in similar

software developed by the Raider Digital Company, a huge software company

with annual sales revenue in excess of $$1$ billion. The executives of Pioneer

Software are distressed that Raider Digital has stolen their ideas; they fear that

Raider's marketing power is likely to enable it to capture the market and drive

Pioneer out of business.

In response, Pioneer has filed a lawsuit against Raider for patent infringement.

With attorney fees and other expenses, the cost of going to trial $($win or lose$)$ is

expected to be $$1$ million. Pioneer feels that it has a $60\%$ chance of winning the

case, in which case it would receive $$5$ million in damages. If Pioneer loses the

case, it gets nothing. Moreover, if Pioneer loses the case, there is a $50\%$ chance

that the judge would also order Pioneer to pay for court expenses and lawyer

fees for Raider $($an additional $$1$ million cost$).$

Raider has countered by offering Pioneer $$1\mathrm{.}5$ million to settle this case out of

court.

Using decision tree analysis, determine in the steps below what Pioneer Software

Company should do$.$

NOTE: In parts $36$ and $38$ you MUST provide a copies of decision tree and of

your Excel calculations, respectively, for problem E to be graded. You

sare also reminded to submit all of your computer files for this problem

with your completed exam to the "Final Exam" link on Bb$.$ Failure to

provide any of these deliverables will result in this problem NOT being

graded.

Draw the decision tree for this problem and annotate it with the expected

monetary values where appropriate.

In a space created below this part, you must present HERE a copy of

your fully$-$annotated decision tree.

a$.$ In new lines entered below this part, state the decision that the Pioneer

Software Company should make.

b$.$ In new lines entered below this part, briefly state the criterion that was

used to arrive at this decision.