Quiz: Quiz 9 (11.6 - 11.8) Question 18 of 18 > This quiz: 18 point(s) possible This question: 1 point(s) possible Submit quiz In a product liability case, a company can settle out of court for a loss of $350,000, or go to trial, losing $1,400,000 if found guilty and nothing if found not guilty. Lawyers for the company estimate the probability of not-guilty verdict to be 0.8. Complete parts (a) through (b) below. a. What is the expected value of the amount the company can lose by taking the case to Court? S b. Should the company settle out of court? O A. The company should settle out of court, since the amount it expects to lose by going to trial is more than the cost of settling out of court. O B. The company should allow the case to go to trial, since the amount it expects to lose by going to trial is less than the cost of settling out of court. O C. The company should settle out of court, since the amount it expects to gain by going to trial is more than the cost of settling out of court. O D. The company should allow the case to go to trial, since the amount it expects to gain by going to trial is more than the cost of settling out of court