A Firm Might Be Liable for $10 Million If a Lawsuit

Multiple Choice

A firm might be liable for $10 million if a lawsuit is brought against it.The firm judges that the probability that the suit will be brought is 0.6.In addition,it believes that its chance of winning such a suit (in which case it owes $0) is 0.7.The firm's overall expected liability is:

A) $6 million.
B) $4.2 million.
C) $3 million.
D) $1.8 million.
E) $1.2 million.