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): 64.5, 55.1, 232.8, 496.1, 127.6, 186.4, 104.7, and 212.2. What value will be used as the point estimate for the mean endowment of all private colleges in the United States?
A) 184.925
B) 1479.4
C) 211.343
D) 8

Question

Quizplus · Accepted Answer

The point estimate for the mean endowment is the average of the given endowments. Adding the values and dividing by the number of colleges (8) gives 184.925 million dollars.

Private Colleges and Universities Rely on Money Contributed by Individuals