An author has written a book and submitted it to a publisher. The publisher offers to print the book and gives the author the choice between a flat payment of $10,000 and a royalty plan. Under the royalty plan the author would receive $1 for each copy of the book sold. The author thinks that the following table gives the probability distribution of the variable x 5 the number of books sold:

Which payment plan should the author choose? Explain your reasoning.

Transcribed Image Text:

20,000 х 1000 0.05 5000 10,000 0.25 Рх) 0.40 0.30