One of Bagget Airlines' planes crashed on December 29. One-hundred fifty people were killed. No one has actually sued yet, but the company's lawyers say that lawsuits are highly likely to be filed, and the company will probably have to pay damages of from $60 to $90 million. All numbers within that range are equally likely. The company should
A) Accrue nothing, since no lawsuits have yet been filed
B) Accrue a liability of $60 million
C) Accrue a liability of $75 million
D) Accrue a liability of $90 million

Question

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The Answer of One of Bagget Airlines' planes crashed on December 29. One-hundred fifty people were killed. No one has actually sued yet, but the company's lawyers say that lawsuits are highly likely to be filed, and the company will probably have to pay damages of from $60 to $90 million. All numbers within that range are equally likely. The company should
A) Accrue nothing, since no lawsuits have yet been filed
B) Accrue a liability of $60 million
C) Accrue a liability of $75 million
D) Accrue a liability of $90 million

One of Bagget Airlines' Planes Crashed on December 29