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Private Colleges and Universities Rely on Money Contributed by Individuals

question 111

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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?

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