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:

a. State the multiple regression equation.

b. Interpret the meaning of the slopes, b₁ and b₂, in this problem.

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

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Standard Error T Statistic p-Value 1.54 0.1260 2.09 0.0395 0.0001 10.70 Variable Coefficients 7.127101 Intercept 11.002079 0.6683647 0.320077 0.8317339 0.077736 Revenue Efficiency