Why does the MATLAB installer quit unexpectedly on a Windows machine with no PATH environment variable?

The MATLAB installation fails near completion with the following error:
The application encountered and unexpected error and needs to close. More information can be found at C:\...\mathworks_<username>.log

 Accepted Answer

This bug has been fixed in Release 2012a (R2012a). For previous product releases, read below for any possible workarounds:
The error is most likely being caused by a lack of PATH environment variable on your system. You can work around the error by manually creating the missing environment variable following the instructions below:
1) Open the Windows Control Panel
2) Select 'System'
3) Select 'Advanced system settings'. A 'System Properties' window will open.
4) Select the 'Advanced' tab
5) Select the 'Environment Variables' button
6) Add a new 'System variable' named "PATH" with a value "C:\Program Files"

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