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ProWasher is the defendant in a patent infringement lawsuit filed by Sue Case over ProWasher s use of a hydraulic compressor in several of its

ProWasher is the defendant in a patent infringement lawsuit filed by Sue Case over ProWashers use of a
hydraulic compressor in several of its products. Anna Turney claims that, if the suit goes against
ProWasher, the loss may be as much as $5 million. It is more likely than not that ProWasher will have to
pay some amount on the settlement. Although the exact amount is not known, the lawyer has been able
to assign probabilities and expected payment amounts as follows (based on Statistics - probability
distributions): 20% probability that the settlement will be $5 million, 35% probability that the settlement
required will be $3 million, and 45% that no settlement will be required. what are the possible liabilities?

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