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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 = the number of books that will be sold: p(x) 1000 0.05 5000 0.2 10,000 0.45 20,000 0.3 How much does the author expects to get under the royalty plan? X

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 = the number of books that will be sold: p(x) 1000 0.05 5000 0.2 10,000 0.45 20,000 0.3 How much does the author expects to get under the royalty plan? X

College Algebra
College Algebra
10th Edition
ISBN:9781337282291
Author:Ron Larson
Publisher:Ron Larson
Chapter8: Sequences, Series,and Probability
Section: Chapter Questions
Problem 41CT: On a game show, a contestant is given the digits 3, 4, and 5 to arrange in the proper order to form...
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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 = the number of books that will be sold: p(x) 1000 0.05 5000 0.2 10,000 0.45 20,000 0.3 X How much does the author expects to get under the royalty plan? $ Which payment plan should the author choose if he/she were quite confident about his/her assessment of the probability distribution of x? flat payment royalty plan
Transcribed Image Text: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 = the number of books that will be sold: p(x) 1000 0.05 5000 0.2 10,000 0.45 20,000 0.3 X How much does the author expects to get under the royalty plan? $ Which payment plan should the author choose if he/she were quite confident about his/her assessment of the probability distribution of x? flat payment royalty plan
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