Private colleges and universities rely on money contributed by individuals and corporations for their operating expenses. Much of this money is put into a fund called an endowment, and the college spends only the interest earned by the fund. A recent survey of 8 private colleges in the United States revealed the following endowments (in millions of dollars): 60.2, 47.0, 235.1, 490.0, 122.6, 177.5, 95.4, and 220.0. What value will be used as the point estimate for the mean endowment of all private colleges in the United States?
A) $1,447.8
B) $143.042
C) $8
D) $180.975

Question

Quizplus · Accepted Answer

To find the point estimate for the mean endowment of all private colleges in the United States, we need to find the sample mean. The sample mean is obtained by adding up all the endowments and dividing by the number of colleges surveyed. So, we have:
(60.2 + 47.0 + 235.1 + 490.0 + 122.6 + 177.5 + 95.4 + 220.0)/8 = 180.975
Therefore, the point estimate for the mean endowment of all private colleges in the United States is $180.975 million. The correct choice is D.

Private Colleges and Universities Rely on Money Contributed by Individuals