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solve;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 number of valid claims;submitted. For example, if there are 500,000 valid claims, each person submitting a valid claim;will receive a coupon with a value of \$50. The denomination of each coupon distributed will be;in a whole dollar amount not to exceed \$50. Thus, if there are fewer than 500,000 valid claims;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. Draw a decision tree for;the Premium Airlines settlement.

Paper#70290 | Written in 18-Jul-2015

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