Question:

Perform an analysis of the problem facing Allied Insurance and prepare a report that summarizes your findings and recommendations. Be sure to include the following items:

• A decision tree
• A recommendation regarding whether Allied should accept John’s initial offer to settle the claim for $750,000
• A decision strategy that Allied should follow if they decide to make John a counteroffer of $400,000
• A risk profile for your recommended strategy

Answer: Decision trees are used to predict, describe and offer clarification for a particular…….