Charity Navigator is America's leading independent charity evaluator. The data in the Excel Online file below show the total expenses ($), the percentage of the total budget spent on administrative expenses, the percentage spent on fundraising, and the percentage spent on program expenses for 10 supersized charities. Administrative expenses include overhead, administrative staff and associated costs, and organizational meetings. Fundraising expenses are what a charity spends to raise money, and program expenses are what the charity spends on the programs and services it exists to deliver. The sum of the three percentages does not add to 100% because of rounding.
Charity Navigator is America's leading independent charity evaluator. The data in the Excel Online file below show the total expenses ($), 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. 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.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
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Problem 1P
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Charity Navigator is America's leading independent charity evaluator. The data in the Excel Online file below 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. 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. Construct a spreadsheet to answer the following questions.
![**Analysis of Outliers and Influential Observations in Fundraising Expenses Data**
**a. Identification of Outliers and Influential Observations**
*Scatter Diagram Analysis*
Looking at the provided scatter diagram, we need to determine if there are any outliers or influential observations.
- The scatter diagram **does** indicate potential influential observation(s). If any potential influential observations exist, the corresponding numbers of charity organizations as shown in the Excel Online file should be selected. If no influential observations are detected, select "None".
Numbers detected: **5, 9**
- The scatter diagram **does** indicate potential outlier(s). Again, if potential outliers exist, select the corresponding numbers of charity organizations as indicated in the Excel Online file. If there are no potential outliers, select "None".
Numbers detected: **3**
**b. Regression Equation Development**
To predict program expenses (%) given fundraising expenses (%), an estimated regression equation needs to be developed.
The regression equation format is:
\[ \text{Program Expenses \% (pred)} = \text{Intercept} + (\text{Slope} \times \text{Fundraising Expenses \%}) \]
**c. Slope Value Interpretation**
- The slope of the estimated regression equation is **-0.56**. This implies that for every 1% increase in fundraising expenses, the program expenses percentage **decreases** by 0.56%. The negative slope and value seem to make sense in this context (to 2 decimal places).
**d. Residual Analysis**
To determine whether any outliers and/or influential observations are present, a residual analysis is performed.
- Observation **3** is an outlier because it has the largest absolute value of the standardized residual.
- Observation **9** is an influential observation because it has the highest leverage.
**Note**: Complete the provided answers based on the specific values from your analysis and data.
**Learning Check**
Utilize the "Check My Work" and "Reset Problem" buttons to verify and reset your solutions respectively. This can help ensure your understanding and correct application of statistical methods to explore and predict trends in data.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbc3ad949-79b2-4a66-83f9-922936cf2321%2F58a6cc87-469a-4045-9745-ef4de7183c14%2Finqnxtf_processed.png&w=3840&q=75)
Transcribed Image Text:**Analysis of Outliers and Influential Observations in Fundraising Expenses Data**
**a. Identification of Outliers and Influential Observations**
*Scatter Diagram Analysis*
Looking at the provided scatter diagram, we need to determine if there are any outliers or influential observations.
- The scatter diagram **does** indicate potential influential observation(s). If any potential influential observations exist, the corresponding numbers of charity organizations as shown in the Excel Online file should be selected. If no influential observations are detected, select "None".
Numbers detected: **5, 9**
- The scatter diagram **does** indicate potential outlier(s). Again, if potential outliers exist, select the corresponding numbers of charity organizations as indicated in the Excel Online file. If there are no potential outliers, select "None".
Numbers detected: **3**
**b. Regression Equation Development**
To predict program expenses (%) given fundraising expenses (%), an estimated regression equation needs to be developed.
The regression equation format is:
\[ \text{Program Expenses \% (pred)} = \text{Intercept} + (\text{Slope} \times \text{Fundraising Expenses \%}) \]
**c. Slope Value Interpretation**
- The slope of the estimated regression equation is **-0.56**. This implies that for every 1% increase in fundraising expenses, the program expenses percentage **decreases** by 0.56%. The negative slope and value seem to make sense in this context (to 2 decimal places).
**d. Residual Analysis**
To determine whether any outliers and/or influential observations are present, a residual analysis is performed.
- Observation **3** is an outlier because it has the largest absolute value of the standardized residual.
- Observation **9** is an influential observation because it has the highest leverage.
**Note**: Complete the provided answers based on the specific values from your analysis and data.
**Learning Check**
Utilize the "Check My Work" and "Reset Problem" buttons to verify and reset your solutions respectively. This can help ensure your understanding and correct application of statistical methods to explore and predict trends in data.
![# Charitable Organization Financial Analysis
## Dataset
| **Charity #** | **Charity** | **Total Expenses (\$)** | **Administrative Expenses (%)** | **Fundraising Expenses (%)** | **Expenses (%)** |
|---------------|----------------------------------------|--------------------------|----------------------------------|------------------------------|------------------|
| 1 | American Red Cross | 3359168915 | 3.9 | 3.9 | 92.3 |
| 2 | World Vision | 1207468361 | 3.8 | 7.3 | 88.1 |
| 3 | Smithsonian Institution | 1079477072 | 23.5 | 2.4 | 73.5 |
| 4 | Food For The Poor | 1053024444 | 0.6 | 2.2 | 96.8 |
| 5 | American Cancer Society | 1002369767 | 6.0 | 22.1 | 71.6 |
| 6 | Volunteers of America | 929407735 | 8.6 | 1.9 | 89.7 |
| 7 | Dana-Farber Cancer Institute | 875030980 | 12.9 | 1.6 | 85.3 |
| 8 | AmericaCares | 852448894 | 0.4 | 0.6 | 98.8 |
| 9 | ALSAC - St. Jude Children's Research Hospital | 831944643 | 9.4 | 16.9 | 73.5 |
| 10 | City of Hope | 734900566 | 13.7 | 2.8 | 83.3 |
## Data Analysis Task
### Part a.
**Use the area below to develop a scatter diagram.**
[This area is represented by a green shading on the spreadsheet, covering cells H1 to Q20. This area is designated for the creation of a scatter plot as part of a data analysis exercise.]
### Part b.
**Instructions for Conducting Linear Regression Analysis:**
1. **Preparation:**](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbc3ad949-79b2-4a66-83f9-922936cf2321%2F58a6cc87-469a-4045-9745-ef4de7183c14%2F5q4be6h_processed.png&w=3840&q=75)
Transcribed Image Text:# Charitable Organization Financial Analysis
## Dataset
| **Charity #** | **Charity** | **Total Expenses (\$)** | **Administrative Expenses (%)** | **Fundraising Expenses (%)** | **Expenses (%)** |
|---------------|----------------------------------------|--------------------------|----------------------------------|------------------------------|------------------|
| 1 | American Red Cross | 3359168915 | 3.9 | 3.9 | 92.3 |
| 2 | World Vision | 1207468361 | 3.8 | 7.3 | 88.1 |
| 3 | Smithsonian Institution | 1079477072 | 23.5 | 2.4 | 73.5 |
| 4 | Food For The Poor | 1053024444 | 0.6 | 2.2 | 96.8 |
| 5 | American Cancer Society | 1002369767 | 6.0 | 22.1 | 71.6 |
| 6 | Volunteers of America | 929407735 | 8.6 | 1.9 | 89.7 |
| 7 | Dana-Farber Cancer Institute | 875030980 | 12.9 | 1.6 | 85.3 |
| 8 | AmericaCares | 852448894 | 0.4 | 0.6 | 98.8 |
| 9 | ALSAC - St. Jude Children's Research Hospital | 831944643 | 9.4 | 16.9 | 73.5 |
| 10 | City of Hope | 734900566 | 13.7 | 2.8 | 83.3 |
## Data Analysis Task
### Part a.
**Use the area below to develop a scatter diagram.**
[This area is represented by a green shading on the spreadsheet, covering cells H1 to Q20. This area is designated for the creation of a scatter plot as part of a data analysis exercise.]
### Part b.
**Instructions for Conducting Linear Regression Analysis:**
1. **Preparation:**
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