Need help solving some finance problems. Any help will be greatly appreciated.
You have chosen biology as your college major to be a medical doctor. You find the probability of being accepted into medical school is about 10%. If you're 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 or the time value of money, what is your expected starting salary as well as the standard deviation of that starting salary?Posted from my mobile device Posted from my mobile device