In recent years, it has been scientifically demonstrated that breast implants can have numerous harmful health side effects. Lawsuits have resulted. A global cash settlement of $$4\mathrm{.}2$ billion has been negotiated by implant maker Dow Corning & parent company Dow Chemical with about $400,000$ women worldwide. In a $2/24/95$ Houston Chronicle article titled "The Gamble of Their Lives: Some Women Skip Settlement, Sue over Implants," it is reported that some of the plaintiffs $($women bringing suit$)$ will forego the opportunity to receive a certain cash settlement $($ranging from $$200,000$ to $$2$ million depending upon age and ailments$)$ and will pursue suits on their own, hoping to receive a larger settlement.

Women who choose to take on the implant manufacturers alone take a gamble, but one with a potentially big payoff. Recently, a Texas woman and her husband were awarded $$5\mathrm{.}2$ million by a Harris County jury, but her co$-$plaintiff, who would have received more than $$1$ million in the settlement, got nothing. $($The jury ruled that there was insufficient evidence to link the co$-$plaintiff's breast implants to her illness.$)$

Barbara Carmichael, a Dow Corning Vice President, says "Going to trial is a very public roll of the dice. My problem is people who think going to trial is like driving up to an ATM cash window. It's not. It's very unpredictable. If you choose to go to trial, the burden of proof is on you. We clearly believe settlement is the better choice, but we will defend ourselves vigorously if we have to$.$ Dow Corning has about a $50\%$ win rate in implant litigation nationwide." She added that pursuing lawsuits is very expensive and that many plaintiffs ultimately have to drop their suits because they lack sufficient financial or psychological resources for the lawsuit and$/$or associated appeals. Pursuit of a lawsuit results in severe physical and mental exhaustion. She mentioned that juries set the amount of damages if the plaintiff wins the suit. If a suit is successful, the amount awarded may be more or may be less than that set in the global settlement.

a$)$ Draw an expectancy theory tree diagram to represent this situation. Using the action alternatives $1)$ sue Dow and $2)$ settle with Dow, draw an expectancy theory tree diagram to represent this situation. $(8$ points$)$

Barbara Carmichael, a Dow Corning Vice President, says "Going to trial is a very public roll of the dice. My problem is people who think going to trial is like driving up to an ATM cash window. It's not. It's very unpredictable. If you choose to go to trial, the burden of proof is on you. We clearly believe settlement is the better choice, but we will defend ourselves vigorously if we have to$.$

b$)$ For the statement above, which one of the expectancy theory variables $($expectancy$,$ instrumentality, and$/$or valence$)$ is Barbara Carmichael using? Briefly justify your answer. $($If you present more than one concept, only the first will be graded.$)(2$ points$)$

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$$Dow Corning has about a $50\%$ win rate in implant litigation nationwide." She added that pursuing lawsuits is very expensive and that many plaintiffs ultimately have to drop their suits because they lack sufficient financial or psychological resources for the lawsuit and$/$or associated appeals.

c$)$ For the statement above, which one of the expectancy theory variables $($expectancy$,$ instrumentality, and$/$or valence$)$ is Barbara Carmichael using? Briefly justify your answer. $($If you present more than one concept, only the first will be graded.$)(2$ points$)$

She mentioned that juries set the amount of damages if the plaintiff wins the suit. If a suit is successful, the amount awarded may be more or may be less than that set in the global settlement.

d$)$ For the statement above, which one of the expectancy theory variables $($expectancy$,$ instrumentality, and$/$or valence$)$ is Barbara Carmichael using? Briefly justify your answer. $($If you present more than one concept, only the first will be graded.$)(2$ points$)$