Ask Data Structure Expert

Premium Airlines has currently offered to settle claims for a class action suit, which was originated for alleged price fixing of tickets. The proposed settlement is stated as follows. Draw a decision tree for this condition.

Initially, Premium Airlines will make available to the settlement class a main fund of $25 million in coupons. If the number of valid claims submitted is 1.25 million or fewer, the value of each claim will be the result obtained by dividing $25 million by the total of valid claims submitted. For instance, if there were 500,000 valid claims, each person submitting a claim would receive a coupon worth $50.
The denomination of each coupon distributed will be in whole dollar amount not to exceed $50. Thus is there are fewer than 500,000 valid claims, then the value of each claim will be divided among two coupons or more. For example, if there are 250,000 valid claims, each person submitting a valid claim will receive two coupons, each having a face value of $50, for a total coupon value of $100.
If the number of valid claims submitted is between 1.25 million and 1.5 million, Premium Airlines will make available a supplemental fund of coupons, with a potential value of $5 million. The supplemental fund will be made available to the extent necessary to provide one $20 coupon for each valid claim. If there are more than 1.5 million valid claims, the total amount of the main fund and the supplemental fund, $30 million, will be divided evenly to produce one coupon for each valid claim. The value of each such coupon will be $30 million divided by the total number of valid claims.

 

Data Structure, Computer Science

  • Category:- Data Structure
  • Reference No.:- M9345687

Have any Question?


Related Questions in Data Structure

Data Communication Delivering Information anywhere

Topic: Data Communication Delivering Information anywhere. Write a 9-12 pages paper in which you: Present an overview of the origin and history of the concept. Describe the current use of and attitude toward the concept. ...

Problem regarding the management program

Problem: Looks like its just adding a save and load feature to the same file you sent me for python 3.5 Until now, you have had to leave your team management program running on your computer indefinitely since you did no ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As