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)$180.975
C)$143.042
D)$8

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 gives $1,447.8 million. Dividing this total by the number of colleges (8) gives an average (mean) endowment of $180.975 million.

Private Colleges and Universities Rely on Money Contributed by Individuals