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.

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. Ifhe goes to court and loses, he must pay $825,000 plus $175,000 incourt costs.If he wins in court the plaintiffs pay the courtcosts. Identify the states of nature of this decision-makingproblem.a) Two choices: (1) go to courtand (2) settle out of court.b) Two possibilities: (1) win thecase in court and (2) lose the case in court.c) Four consequences resultingfrom Go/Settle and Win/Lose combinations.d) The amount of money paid by thedoctor.

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