Private Colleges and Universities Rely on Money Contributed by Individuals

question 27

Multiple Choice

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. Summary statistics yield X = 180.975 and S = 143.042 . Calculate a 95% confidence interval for the mean endowment of all the private colleges in the United States assuming a normal distribution for the endowments.

• A) $180.975 ± $94.066
• B) $180.975 ± $99.123
• C) $180.975 ± $116.621
• D) $180.975 ± $119.586

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Definitions:

Automatization

The process by which a skill becomes so practiced that it can be performed with little conscious effort.

Categorization

The cognitive process of organizing objects, ideas, or experiences into groups based on shared characteristics or attributes.

Information Processing Approach

This concept refers to the way humans process information, drawing parallels between the mind's function and computer processes, emphasizing steps such as encoding, storing, and retrieving data.

Automatization

The process by which tasks and skills become automatic through repetition, requiring minimal conscious thought or effort.