Private colleges and universities rely on money contributed by individuals and corporations for their operating expenses. Much of this money is invested in a fund called an endowment, and the college spends only the interest earned by the fund. A recent survey of eight private colleges in the United States revealed the following endowments (in millions of dollars): 77.8, 45.1, 243.4, 489.5, 113.9, 187.6, 102.4, and 210.2. What value will be used as the point estimate for the mean endowment of all private colleges in the United States?

A) 183.738
B) 8
C) 209.986
D) 1469.9

Question

Private colleges and universities rely on money contributed by individuals and corporations for their operating expenses. Much of this money is invested in a fund called an endowment, and the college spends only the interest earned by the fund. A recent survey of eight private colleges in the United States revealed the following endowments (in millions of dollars) : 77.8, 45.1, 243.4, 489.5, 113.9, 187.6, 102.4, and 210.2. What value will be used as the point estimate for the mean endowment of all private colleges in the United States?

A) 183.738
B) 8
C) 209.986
D) 1469.9

Quizplus · Accepted Answer

The point estimate for the mean endowment is the average of the given endowments, which is calculated by summing the values and dividing by the number of colleges: (77.8 + 45.1 + 243.4 + 489.5 + 113.9 + 187.6 + 102.4 + 210.2) / 8 = 183.738 million dollars.

Private Colleges and Universities Rely on Money Contributed by Individuals