Question: 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

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

97

nonprofit organizations, with the results provided in the accompanying table. Complete parts (a) through (c) below.

Variable

Coefficients

Standard Error

T Statistic

p-Value

Intercept

11.426429

7.180566

1.59

0.1149

Revenue

0.6715193

0.321856

2.09

0.0397

Efficiency

0.8062242

0.077013

10.47

<0.0001

a.

State the multiple regression equation.

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