Litigation risk analysis is a subset of decision tree analysis and is the application of decision tree analysis to litigation and lawsuits. It operates based on the idea that prosecutors do not prosecute all cases even if they have merit due to several factors such as economic considerations. This method can reveal the odds of winning a case or financial loss that a litigation would incur, especially if it is too great for the kind of offence involved or there is an imbalance between effort and need. With this tool, a prosecutor is in a better position to decide whether to pursue a case or offer a plea bargain if this is permitted.
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