Question

Private colleges and university rely on money contributed

byindividuals and corporations for their operating expenses. Much
ofthis money is put into a fund called an endowment, and the
collegespends only the interest earned by the fund. A recent survey
ofeight private colleges in the United States revealed the
followingendowments (in millions of dollars): 78.8, 50.3, 243.2,
489, 111.5,163.7, 92.4, 212.8. What value will be used as the point
estimatefor the mean endowment of all private colleges in the
UnitedStates?

Answer 1

The point estimate for the mean endowment of all private colleges in the United States is 180.2125 million dollars.

Explanation:

We are given endowments (in millions of dollars) of eight private colleges in the United States:

78.8, 50.3, 243.2, 489, 111.5, 163.7, 92.4, 212.8

We have to find the point estimate of the population mean endowment of all private colleges in the United States.

The point estimate will be given by the sample mean.

`\mu = \bar{x}`

Formula:

`Mean = \displaystyle\frac{\text{Sum of all observations}}{\text{Total number of observation}}`

`Mean =\displaystyle(1441.7)/(8) = 180.2125`

Thus, the point estimate is 180.2125 million dollars.