A Defendant Believes There Is a 70 Percent Chance That

question 200

Multiple Choice

A defendant believes there is a 70 percent chance that the plaintiff will win $800,000 and a 30 percent chance that the plaintiff will lose and be awarded nothing (zero) . The plaintiff believes that there is a 90 percent chance that they will win $800,000 and a 10 percent chance that they will be awarded nothing (zero) . The plaintiff's litigation cost is $300,000 and the defendant's litigation cost is $200,000. What is the defendant's expected loss from the litigation?

• A)$660,000
• B)$420,000
• C)$760,000
• D)$550,000

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Definitions:

Territory Coverage

The strategic allocation of sales or service resources to different geographical areas to maximize market reach and efficiency.

Quantitative Technique

refers to mathematical models, statistical methods, and computational algorithms used to analyze numerical data, allowing for decision making based on quantitative information.

Break-even Analysis

An examination to determine the point at which revenue received equals the costs associated with receiving the revenue, indicating no net loss or gain.

Total Revenues

Total revenues refer to the sum of all income generated by a business from its sales or services before any expenses are subtracted.