Chapter 14, Problem 3PS

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, of nonprofit size $X_{\text{1}}$ and Efficiency, a measurement of the percent of private donations remaining after fundraising expenses as a measured of nonprofit fundraising efficiency $X_{\text{2}}.$ The dependent variable $Y$ is Commitment, a measurement of the percent of total expenses that are allocated directly to charitable service. Data are collected from a random sample of 98 nonprofit organizations, with the following results:

a. State the multiple regression equation.

b. Interpret the meaning of the slopes. $b_1$ and $b_2,$ in this problem.

c. What conclusions can you reach concerning nonprofit charitable commitment?