Question 1 An author is trying to choose between two (2) publishing companies that are competing for the marketing rights to her new novel. Company X offered the author RM 10,000 plus RM 2 per book sold. Company Y offered the author RM 2,000 plus RM 4 per book sold. The author believes that there are four (4) levels of demand for the book: 1000, 2000, 3000 and 6000 books are sold. If the probabilities of each level of demand are as follows: Demand Probability 1000 0.31 2000 0.32 3000 0.25 6000 0.12 a) Construct the payoff table for each level of demand for company X and company Y. b) Determine the best decision based on the maximax criterion. c) Compute the expected monetary value (EMV) and expected opportunity loss (EOL). Hence determine the best decision that this author should do.