Posted by **Vanessa** on Friday, March 25, 2011 at 12:23am.

Key considerations as Allied develops its strategy for disposing of the case are the probabilities associated with Johnâ€™s response to an Allied counteroffer of $400,000 and the probabilities associated with the three possible trial outcomes. John will accept a counteroffer of $400,000 is 0.10, John will reject the counteroffer of $400,000 is 0.40, and John will make a counteroffer of $600,000 is 0.50. If the case goes to court, they believe the jury will award John damages of $1,500,000 is 0.30, award John damages of $750,000 is 0.50 and the probability the jury will award John nothing is 0.20.

What would a risk profile of recommended strategy be? Examples please.