What is Expected cost (custo esperado)?

Expected cost is the probable value of a case — the probability of conviction times the amount at risk, plus the cost of litigating (fees, time, interest). It is the calculation that decides the course of action.

Litigating pays off when the expected cost of litigating is lower than that of settling; settling, otherwise. Without probability, the calculation becomes a guess.

How LABORIS AI uses it

LABORIS AI computes the expected cost of each course of action — litigate, settle, concede — and the decision matrix recommends the one of lowest value.