A nonprofit analyst seeks to determine which variables should be used to predict nonprofit charitable commitment, a nonprofit organization commitment to its charitable purpose. Two independent variables under consideration are Revenue, a measurement of total revenue, in billions of dollars, as a measure of nonprofit size X₁ and Efficiency, a measurement of the percent of private donations remaining after fundraising expenses as a measure of nonprofit fundraising efficiency X₂. The dependent variable Y is Commitment, a measurement of the percent of total expenses that are allocated directly to charitable services. Both variables X₂ and Y are encoded as percents. Data are collected from a random sample of 97 nonprofit organizations, with the results provided in the accompanying table. Complete parts (a) through (c) below. b. Interpret the meaning of the slopes, b₁ and b₂. Choose the correct answer below. Interpret the meaning of the slope b₁. Select the correct choice below and fill in the answer box within your choice. O A. Holding efficiency constant, for each increase of $1 billion in revenue, the mean percent of a nonprofit organization's total expenses that are allocated directly to charitable services is predicted to increase by %. (Round to the nearest integer as needed.) OB. Holding revenue constant, for each increase of 1% in efficiency, the mean percent of a nonprofit organization's total expenses that are allocated directly to charitable services is predicted to increase by %. (Round to the nearest integer as needed.)
A nonprofit analyst seeks to determine which variables should be used to predict nonprofit charitable commitment, a nonprofit organization commitment to its charitable purpose. Two independent variables under consideration are Revenue, a measurement of total revenue, in billions of dollars, as a measure of nonprofit size X₁ and Efficiency, a measurement of the percent of private donations remaining after fundraising expenses as a measure of nonprofit fundraising efficiency X₂. The dependent variable Y is Commitment, a measurement of the percent of total expenses that are allocated directly to charitable services. Both variables X₂ and Y are encoded as percents. Data are collected from a random sample of 97 nonprofit organizations, with the results provided in the accompanying table. Complete parts (a) through (c) below. b. Interpret the meaning of the slopes, b₁ and b₂. Choose the correct answer below. Interpret the meaning of the slope b₁. Select the correct choice below and fill in the answer box within your choice. O A. Holding efficiency constant, for each increase of $1 billion in revenue, the mean percent of a nonprofit organization's total expenses that are allocated directly to charitable services is predicted to increase by %. (Round to the nearest integer as needed.) OB. Holding revenue constant, for each increase of 1% in efficiency, the mean percent of a nonprofit organization's total expenses that are allocated directly to charitable services is predicted to increase by %. (Round to the nearest integer as needed.)
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
Transcribed Image Text:A nonprofit analyst seeks to determine which variables should be used to predict nonprofit charitable commitment, a nonprofit organization commitment to its charitable purpose. Two independent
variables under consideration are Revenue, a measurement of total revenue, in billions of dollars, as a measure of nonprofit size X₁ and Efficiency, a measurement of the percent of private donations
remaining after fundraising expenses as a measure of nonprofit fundraising efficiency X₂. The dependent variable Y is Commitment, a measurement of the percent of total expenses that are allocated
directly to charitable services. Both variables X₂ and Y are encoded as percents. Data are collected from a random sample of 97 nonprofit organizations, with the results provided in the accompanying
table. Complete parts (a) through (c) below.
b. Interpret the meaning of the slopes, b₁ and b₂. Choose the correct answer below.
Interpret the meaning of the slope b₁. Select the correct choice below and fill in the answer box within your choice.
1.
O A. Holding efficiency constant, for each increase of $1 billion in revenue, the mean percent of a nonprofit organization's total expenses that are allocated directly to charitable services is predicted
to increase by %.
(Round to the nearest integer as needed.)
B. Holding revenue constant, for each increase of 1% in efficiency, the mean percent of a nonprofit organization's total expenses that are allocated directly to charitable services is predicted to
increase by %.
(Round to the nearest integer as needed.)
O C. The slope b₁ cannot be interpreted individually.
Transcribed Image Text:Table of results
Variable
Intercept
Revenue
Efficiency
Coefficients
11.680464
0.6999226
0.8029396
Print
Standard
Error
7.132097
0.321328
0.077201
T Statistic
1.64
2.18
10.40
Done
p-Value
0.1048
0.0319
<0.0001
X
ons of dollars, as a measure of nonp
sure of nonprofit fundraising efficienc
haritable services. Both variables X₂
d in the accompanying table. Comple
Expert Solution
Step 1
It is given that revenue a measurement of total revenue in billions of dollars as a measure of nonprofit size and efficiency a measurement of the percent of private donations remaining after fundraising expenses as a measure of nonprofit fundraising efficiency .
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