Reference no: EM133608917

Question: Every year, the administration at ND University receives funding from the provincial government. This year, the government announced that due to budget cuts, it would be providing significantly less funding. Although ND University has yet to hear what the actual amount of the cut will be, the administration has decided to be proactive and try to identify ways to be more efficient with its money. Each year, each department is given an equal amount of money per student registered in the depart- ment. For example, the accounting department is given the same amount per student as the science department. In addition, the university gives an equal amount per student regardless of whether the student is a graduate student or an undergraduate student. As such, the university assumes that all students cost the same amount of money. During a recent town hall meeting to discuss the budget cuts, one faculty member brought up the idea that some departments run cash surpluses at the end of each year, because they do not spend all the money provided per student. This might be an indication that some departments have students who cost the university less than others. One way to determine the cost