Chapter 7.4, Problem 44E

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 sold:

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