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): 88.9, 56, 249.3, 497,
124.7, 157.6, 108.9, and 222.8. What value will be used as the point estimate for the mean
Endowment of all private colleges in the United States?
A)215.029
B)8
C)188.15
D)1505.2

Question

Quizplus · Accepted Answer

The point estimate for the mean endowment of all private colleges in the United States is calculated by finding the average of the given endowments. Adding all the endowments together and dividing by the number of colleges (8) gives the mean endowment, which is 1505.2 divided by 8, resulting in 188.15 million dollars.

Private Colleges and Universities Rely on Money Contributed by Individuals