The head of philanthropy at the Shady Hills, Michigan, Institute of Fine Arts has asked her assistant to come up with some statistical evidence on the causes of variation in member renewal rates (measured as the percentage of members who renew each year). The assistant hypothesizes that new exhibits are essential to keeping members interested and selects the number of new exhibits each year as the first independent variable (EXHIBITS). The assistant selects the number of mail or telephone contacts with members (per year) as the second independent variable (CONTACTS) because she feels that members may become annoyed and lose interest if they are contacted too many times over the course of a year. Using data for the last 15 years, the assistant generates the following regression output: 

(a) Interpret the slopes, intercept, and R2 for this model. Write a short memo to the head of philanthropy discussing these results. What potential changes in policy would you recommend based on these results?

(b) Compare the unstandardized and standardized regression coefficients. How does the relative impact of each independent variable vary across the two sets of coefficients?

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Model 1 R² .901 "Predictors: (Constant), CONTANCTS, EXHIBITS. Model 1 R .949⁰ Model 1 Regression Residual Total "Predictors: (Constant), CONTACTS, EXHIBITS. Dependent variable: RENEWAL. (Constant) EXHIBITS CONTACTS Model Summary ANOVA Sum of Squares df 183.538. 2 20.062 203.600 "Dependent variable: RENEWAL. B 45.348 1.078 -1.434 12 14 Unstandardized Coefficients Coefficients Std. Error 2.265 .252 .410 Adj. R² .885 Mean Square 91.769 1.672 Standardized Coefficients Beta 562 -.460 Std. Error of the Estimate 1.29298 F 54.892 t 20.022 4.271 -3.496 Sig. .000* Sig. .000 .001 .004