Question: please also create a decidon tree with the answer Construct and use a decision tree to determine whether Meredith should go to court or accept
Construct and use a decision tree to determine whether Meredith should go to court or accept the settlement offer, assuming she wants to maximize her expected payoff. The decision is whether to go to trial (with a cost of $1 million) or settle (receive a payment of $1.5 million), represented in the decision tree by a decision node with two branches. If Meredith goes to trial, she will win ( 50% probability) or lose ( 50% probability), represented as an event node with two branches. If she loses, there is also a 60% chance that she must pay court fees, represented as an event node with two branches. If she goes to trial and wins, her net payoff is $5 million $1 million =$4 million. If she goes to trial and loses, but doesn't pay court fees, her net payoff is $1 million. If she goes to trial and loses and must pay court fees, her net payoff is -2 million. If she settles, she receives a net payoff of $1.5 million
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