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Suppose that a college graduate earns about 78% more money per hour than a high- school graduate. If the lifetime earnings of a high-school graduate average $1,200,000, what is the expected value of earning a college degree?

I did (1,200,000)(1.78) = 2,136,000 I thought this was the answer but would the answer actually be 2,136,000-1,200,000 and be 936,000?

Solenn
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    that's more of an English question than a math one, but I think most people would tend toward the second meaning. By assumption, your "base income" is $$1.2$ million and acquiring the extra degree adds $$936$ thousand to that, hence that is its value. – lulu Jan 30 '16 at 15:10
  • The college graduate may work for fewer hours (assuming that studying takes time which could otherwise be used working) – Henry Jan 30 '16 at 15:17

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