You have chosen biology as your college major because you would like to be a medical doctor. However, you find that the probability of being accepted to medical school is about 6 percent. If you are accepted to medical school, then your starting salary when you graduate will be $332,397 per year. However, if you are not accepted, then you would choose to work in a zoo, where you will earn $30,220 per year. Without considering the additional educational years or the time value of money.
What is your expected starting salary?
What is the standard deviation of that starting salary?