Required medical treatment and her hospital stay incurred

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A person is hit by a car while crossing the street at a crosswalk. Her injuries required medical treatment and her hospital stay incurred $10,000 in medical expenses. Insurance company of the faulty driver who hit the person has offered 100,000 in settlement to her. If she accept the offer,she will get $100,000 immediately but lose the right to ask for any more damages in the future. If she refuses the offer, she can sue and take the insurance company to trial. Her trial costs will be $10,000. The probability that she will win in court is 90%. If she wins, there is a 20% probability she will be awarded $400,000 and an 80% probability she will be awarded $25,000 in damages

Reference no: EM132028431

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