A Medical Doctor Is Involved in a $1 Million Malpractice

A medical doctor is involved in a $1 million malpractice suit. He can either settle out of court for $250,000 or go to court. If he goes to court and loses, he must pay $825,000 plus $175,000 in court costs. If he wins in court the plaintiffs pay the court costs. Identify the states of nature of this decision-making problem.

A) the amount of money paid by the doctor
B) two choices: (1) go to court and (2) settle out of court
C) four consequences resulting from Go/Settle and Win/Lose combinations
D) two possibilities: (1) win the case in court and (2) lose the case in court

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