Jenny Lind is a writer of romance novels. A movie company and a TV network both want exclusive rights to one of her more popular works.If she signs with the network, she will receive a single lump sum, but if she signs with the movie company, the amount she will receive depends on the market response to her movie.What should she do?

Payouts and Probabilities:

nMovie company Payouts

Small box office - $200,000

Medium box office - $1,000,000

Large box office - $3,000,000

nTV Network Payout

Flat rate - $900,000

nProbabilities

P(Small Box Office) = 0.3

P(Medium Box Office) = 0.6

P(Large Box Office) = 0.1