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. Both variables X2 and Y are encoded as percents. Data are collected from a random sample of 96 nonprofit organizations, with the results provided in the accompanying table.

Variable	Coefficients	Standard Error	T Statistic	P-value
Intercept	11.981179	7.108473	1.69	0.0952
Revenue	0.6488625	0.320214	2.03	0.0456
Efficency	0.8170839	0.077604	10.53	<0.0001

1. Interpret the meaning of the slopes, b1 and b2. Choose the correct answer below. Interpret the meaning of the slope

b1.

Select the correct choice below and fill in the answer box within your choice. Answer is A by 65% but how do I get this?

A.

Holding efficiency constant, for each increase of $1 billion in revenue, the mean percent of a nonprofit organization's total expenses that are allocated directly to charitable services is predicted to increase by *enter your response here%.

(Round to the nearest integer as needed.)

B.

Holding revenue constant, for each increase of 1% in efficiency, the mean percent of a nonprofit organization's total expenses that are allocated directly to charitable services is predicted to increase by *enter your response here%.

(Round to the nearest integer as needed.)

C.

The slope b1 cannot be interpreted individually.

2. Interpret the meaning of the slope b2. Select the correct choice below and fill in the answer box within your choice. The answer is A by 82% but how do I get this?

A.

Holding revenue constant, for each increase of 1% in efficiency, the mean percent of a nonprofit organization's total expenses that are allocated directly to charitable services is predicted to increase by *enter your response here%.

(Round to the nearest integer as needed.)

B.

Holding efficiency constant, for each increase of $1 billion in revenue, the mean percent of a nonprofit organization's total expenses that are allocated directly to charitable services is predicted to increase by *enter your response here%.

(Round to the nearest integer as needed.)

C.

The slopes b2 cannot be interpreted individually.