Chapter 3.1, Problem 9E

Endowment income is a critical part of the annual budgets at colleges and universities. A study by the National Association of College and University Business Officers reported that the 435 colleges and universities surveyed held a total of $413 billion in endowments. The 10 wealthiest universities are shown below (The Wall Street Journal, January 27, 2009). Amounts are in billion of dollars.

University	Endowment ($billion)	University	Endowment ($billion)
Columbia	7.2	Princeton	16.4
Harvard	36.6	Stanford	17.2
M.I.T.	10.1	Texas	16.1
Michigan	7.6	Texas A&M	6.7
Northwestern	7.2	Yale	22.9

1. a. What is the mean endowment for these universities?
2. b. What is the median endowment?
3. c. What is the mode endowment?
4. d. Compute the first and third quartiles.
5. e. What is the total endowment at these 10 universities? These universities represent 2.3% of the 435 colleges and universities surveyed. What percentage of the total $413 billion in endowments is held by these 10 universities?
6. f. The Wall Street Journal reported that over a recent five-month period, a downturn in the economy has caused endowments to decline 23%. What is the estimate of the dollar amount of the decline in the total endowments held by these 10 universities? Given this situation, what are some of the steps you would expect university administrators to be considering?