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You have chosen Biology as your college major because you would like to be a medical doctor. However, your find that probability of being accepted into medical school is about 10 percent. If you are accepted into medical school is about 10 percent. If you are accepted into medical school, then your starting salary when you graduate will be $300,000 per year. However if you are not accepted, then you would choose to work in a zoo, where you will earn $40,000 per year. Without considering the additional educational years of the time value of money, what is your expected starting salary as well as the standard deviation of that starting salary?

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15y ago

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