Managerial Report Case Study Example | Topics and Well Written Essays - 750 words

Managerial Report - Case Study ExampleBut there is one more chance that he would restitution offer another reduced amount of 600,000 (probability of 0.5)If john takes the case to court it may happen that court award him with damages of $1,500,000 (probability of 0.3) and may award $750,000 (probability of 0.5). there is excessively one more chance that he would not be given even a single penny (probability of 0.2).Detailed analysis of the preceding(prenominal) situation suggest that according to the given probabilities of the all the situations option of offering john $400,000 would be beneficial because there are chances that he may expect this offer actual outflow may range from $0 to $1,500,000. But chances of both are very low. Event of high chances are payment of $750,000 (which is pertain in outflow of 1st option) and payment of $600,000 (which is lower than the first option). Other gives may be payment of $400,000 (again lower than first option) zero payment (most brot herly event in this whole situation) and payment of $1,500,000 (most disastrous situation). Except this last situation all the other options are beneficial.Although first option is safe and result in an outflow of $750,000 but there are no chances that allied would pay any other amount bigger than this. But option 2 is little risky as it can result in a payment of bigger amount of $1,500,000. But as result of all probabilities is also less than the amount of 1st option therefore it seems worthwhile