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Question
Consider the following information about job opportunities for new college graduates in Megalopolis:Table 1
| Major | Probability of Receiving an Offer in One Year | Average Salary Offer |
| Accounting | .95 | $25,000 |
| Economics | .90 | $30,000 |
| English | .70 | $24,000 |
| Poli Sci | .60 | $18,000 |
| Mathematics | 1.00 | $21,000 |
Refer to Table 5.1. A risk-averse student making a decision solely on the basis of the above information
A) would definitely become a math major.
B) would definitely not become an English major.
C) would definitely become a political science major.
D) might be either a mathematics major or English major, depending upon the utility of the average offer.
E) would definitely be indifferent between the accounting major and the English major if the probability of finding a job in accounting were any value higher than 0.95.
Answer
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