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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. Data are collected from a random
sample of 98 nonprofit organizations, with the following results:
FUQ.sh
sh the exam.
Intercept
7.127
Variable
Standard t Statistic
Coefficients Error
11.002
p-Value
1.54
0.1260
Revenue
0.668
0.320
2.09
0.0395
Efficiency
0.832
0.078
10.70
0.0001
Predict the mean commitment when the revenue is 10 billion dollars and
the efficiency is 40 percent.
