A Medical Doctor Is Involved in a $1 Million Malpractice

Multiple Choice

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