1. Use residual analysis to determine whether any outliers and/or influential observations are present. Briefly summarize your findings and conclusions. Round to 3 decimals and enter negative value as negative numbers, if necessary. * Charity Standard Residuals Leverage 1 American Red Cross 2 World Vision 3 Smithsonian Institution 4 Food For The Poor 5 American Cancer Society 6 Volunteers of America 7 Dana-Farber Cancer Institute 8 AmeriCares ALSAC-St. Jude Children's 9 Research Hospital 10 City of Hope Observation is an outlier because it has a large standardized residual. Observation is an influential observation because it has high leverage.

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
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Charity Navigator is America's leading independent charity evaluator. The following data show the total expenses ($), the percentage of the total budget spent on administrative expenses, the percentage spent on fundraising, and the
percentage spent on program expenses for 10 supersized charities (Charity Navigator website). Administrative expenses include overhead, administrative staff and associated costs, and organizational meetings. Fundraising expenses are
what a charity spends to raise money, and program expenses are what the charity spends on the programs and services it exists to deliver. The sum of the three percentages does not add to 100% because of rounding. Do not round your
intermediate calculations.
Total
Administrative Fundraising Program
Expenses
Expenses
Expenses Expenses
Charity
(millions of $)
(%)
(%)
(%)
1 American Red Cross
3352
3.9
3.9
92.2
2 World Vision
1210
3.8
7.8
88.6
3 Smithsonian Institution
1082
23.5
2.6
73.6
4 Food For The Poor
1049
0.8
2.2
96.5
5 American Cancer Society
1004
5.9
22.2
71.9
6 Volunteers of America
932
8.4
1.8
89.3
7 Dana-Farber Cancer Institute
875
12.9
1.7
85.3
8 AmeriCares
853
0.4
0.5
98.9
9 ALSAC-St. Jude Children's
831
9.5
16.7
73.5
Research Hospital
10 City of Hope
735
13.7
2.9
83.2
a. Select a scatter diagram with fundraising expenses (%) on the horizontal axis and program expenses (%) on the vertical axis.
A.
В.
Program expenses(%)
Program expenses(%)
120-
120-
100-
100
80-
80
60
60-
60-
60-
40-
40-
20-
20-
15
20
Fundraising expenses (%)
10
20
Fundraising expenses (%)
15
25
10
25
C.
D.
Program expenses(%)
Program expenses(%)
120-
120-
100
100-
80-
80
60-
60
40-
40+
20-
20-
20
Fundraising expenses (%)
10
15
25
10
15
20
25
Fundraising expenses (%)
Transcribed Image Text:Charity Navigator is America's leading independent charity evaluator. The following data show the total expenses ($), the percentage of the total budget spent on administrative expenses, the percentage spent on fundraising, and the percentage spent on program expenses for 10 supersized charities (Charity Navigator website). Administrative expenses include overhead, administrative staff and associated costs, and organizational meetings. Fundraising expenses are what a charity spends to raise money, and program expenses are what the charity spends on the programs and services it exists to deliver. The sum of the three percentages does not add to 100% because of rounding. Do not round your intermediate calculations. Total Administrative Fundraising Program Expenses Expenses Expenses Expenses Charity (millions of $) (%) (%) (%) 1 American Red Cross 3352 3.9 3.9 92.2 2 World Vision 1210 3.8 7.8 88.6 3 Smithsonian Institution 1082 23.5 2.6 73.6 4 Food For The Poor 1049 0.8 2.2 96.5 5 American Cancer Society 1004 5.9 22.2 71.9 6 Volunteers of America 932 8.4 1.8 89.3 7 Dana-Farber Cancer Institute 875 12.9 1.7 85.3 8 AmeriCares 853 0.4 0.5 98.9 9 ALSAC-St. Jude Children's 831 9.5 16.7 73.5 Research Hospital 10 City of Hope 735 13.7 2.9 83.2 a. Select a scatter diagram with fundraising expenses (%) on the horizontal axis and program expenses (%) on the vertical axis. A. В. Program expenses(%) Program expenses(%) 120- 120- 100- 100 80- 80 60 60- 60- 60- 40- 40- 20- 20- 15 20 Fundraising expenses (%) 10 20 Fundraising expenses (%) 15 25 10 25 C. D. Program expenses(%) Program expenses(%) 120- 120- 100 100- 80- 80 60- 60 40- 40+ 20- 20- 20 Fundraising expenses (%) 10 15 25 10 15 20 25 Fundraising expenses (%)
Looking at the data, do there appear to be any outliers and/or influential observations?
The scatter diagram does
v indicate potential influential observation(s). If there are potential influential observations enter the number of charity organizations as indicated in the table above separated by commas as needed. If there are no potential
influential observations leave the input box blank. For example if you think that the answer is American Red Cross enter 1.
5,9
The scatter diagram does
v indicate potential outlier(s). If there are potential outliers enter the number of charity organizations as indicated in the table above separated by commas as needed. If there are no outliers leave the input box blank. For
example if you think that the answer is American Red Cross enter 1.
b. Develop an estimated regression equation that could be used to predict program expenses (%) given fundraising expenses (%).
Program Expenses (%) =
90.94
0.90 Fundraising Expenses (%) (to 2 decimals)
c. Does the value for the slope of the estimated regression equation make sense in the context of this problem situation? Enter negative values as negative numbers.
The slope of the estimtaed regression equation is
-0.90
Thus, for every 1% increase in the amount spent on fundraising the percentage spent on program expenses will decrease
v by
-0.90 %; in other words, just a little under 1%. The
negative
v slope and value seem to make sense in the context of this problem situation (to 2 decimals).
d. Use residual analysis to determine whether any outliers and/or influential observations are present. Briefly summarize your findings and conclusions. Round to 3 decimals and enter negative value as negative numbers, if necessary.
# Charity
Standard Residuals
Leverage
1 American Red Cross
2 World Vision
3 Smithsonian Institution
4 Food For The Poor
5 American Cancer Society
6 Volunteers of America
7 Dana-Farber Cancer Institute
8 AmeriCares
ALSAC-St. Jude Children's
9 Research Hospital
10 City of Hope
Observation
is an outlier because it has a large standardized residual.
Observation
is an influential observation because it has high leverage.
Transcribed Image Text:Looking at the data, do there appear to be any outliers and/or influential observations? The scatter diagram does v indicate potential influential observation(s). If there are potential influential observations enter the number of charity organizations as indicated in the table above separated by commas as needed. If there are no potential influential observations leave the input box blank. For example if you think that the answer is American Red Cross enter 1. 5,9 The scatter diagram does v indicate potential outlier(s). If there are potential outliers enter the number of charity organizations as indicated in the table above separated by commas as needed. If there are no outliers leave the input box blank. For example if you think that the answer is American Red Cross enter 1. b. Develop an estimated regression equation that could be used to predict program expenses (%) given fundraising expenses (%). Program Expenses (%) = 90.94 0.90 Fundraising Expenses (%) (to 2 decimals) c. Does the value for the slope of the estimated regression equation make sense in the context of this problem situation? Enter negative values as negative numbers. The slope of the estimtaed regression equation is -0.90 Thus, for every 1% increase in the amount spent on fundraising the percentage spent on program expenses will decrease v by -0.90 %; in other words, just a little under 1%. The negative v slope and value seem to make sense in the context of this problem situation (to 2 decimals). d. Use residual analysis to determine whether any outliers and/or influential observations are present. Briefly summarize your findings and conclusions. Round to 3 decimals and enter negative value as negative numbers, if necessary. # Charity Standard Residuals Leverage 1 American Red Cross 2 World Vision 3 Smithsonian Institution 4 Food For The Poor 5 American Cancer Society 6 Volunteers of America 7 Dana-Farber Cancer Institute 8 AmeriCares ALSAC-St. Jude Children's 9 Research Hospital 10 City of Hope Observation is an outlier because it has a large standardized residual. Observation is an influential observation because it has high leverage.
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