2 ms·
The EV is the payoff times the probability. If there were only a 10% chance of paying (for example) treble damages without admitting guilt, then a company would
by totalZero 6y ago
The EV is the payoff times the probability. If there were only a 10% chance of paying (for example) treble damages without admitting guilt, then a company would take that bet repeatedly and the wins would more than pay for the losses.