Predicting Charity Expenses. Charity Navigator is America’s leading independent charity evaluator. The following data show the total expenses ($), the percentage of the total budget spent on administrative expenses, the percentage spent on fundraising, and the percentage spent on program expenses for 10 supersized charities (Charity Navigator website). Administrative expenses include overhead, administrative staff and associated costs, and organizational meetings. Fundraising expenses are what a charity spends to raise money, and program expenses are what the charity spends on the programs and services it exists to deliver. The sum of the three percentages does not add to 100% because of rounding.
Source: Charity Navigator website, (https://www.charilynavigator.org/)
- a. Develop a
scatter diagram with fundraising expenses (%) on the horizontal axis and program expenses (%) on the vertical axis. Looking at the data, do there appear to be any outliers and/or influential observations? - b. Develop an estimated regression equation that could be used to predict program expenses (%) given fundraising expenses (%).
- c. Does the value for the slope of the estimated regression equation make sense in the context of this problem situation?
- d. Use residual analysis to determine whether any outliers and/or influential observations are present. Briefly summarize your findings and conclusions.
Trending nowThis is a popular solution!
Chapter 14 Solutions
Essentials Of Statistics For Business & Economics
- Charity Navigator is America's leading independent charity evaluator. The following data show the total expenses ($), the percentage of the total budget spent on administrative expenses, the percentage spent on fundraising, and the percentage spent on program expenses for 10 supersized charities (Charity Navigator website). Administrative expenses include overhead, administrative staff and associated costs, and organizational meetings. Fundraising expenses are what a charity spends to raise money, and program expenses are what the charity spends on the programs and services it exists to deliver. The sum of the three percentages does not add to 100% because of rounding. Do not round your intermediate calculations. Total Administrative Fundraising Program Expenses Expenses Expenses Expenses Charity (millions of $) (%) (%) (%) 1 American Red Cross 3352 3.9 3.9 92.3 2 World Vision 1205 4.1 7.5 88.3 3 Smithsonian Institution 1082 23.4 2.6 73.9 4 Food For The Poor 1048 0.5 2.3 96.9 5…arrow_forwardCharity Navigator is America's leading independent charity evaluator. The following data show the total expenses ($), the percentage of the total budget spent on administrative expenses, the percentage spent on fundraising, and the percentage spent on program expenses for 10 supersized charities (Charity Navigator website). Administrative expenses include overhead, administrative staff and associated costs, and organizational meetings. Fundraising expenses are what a charity spends to raise money, and program expenses are what the charity spends on the programs and services it exists to deliver. The sum of the three percentages does not add to 100% because of rounding. Do not round your intermediate calculations. Charity Total Administrative Fundraising Program Expenses Expenses Expenses Expenses (millions of $) (%) Fundraising Program 1 American Red Cross 3352 3.9 3.9 92.2 2 World Vision 1210 3.8 7.8 88.6 3 Smithsonian Institution 1082 23.5 2.6 73.6 4 Food For…arrow_forwardCompare and contrast the three types of responsibility centers. What is the best way to evaluate a manager's performance in each type of center? What is the problem with using only financial measures of performance?arrow_forward
- Charity Navigator is America's leading independent charity evaluator. The following data show the total expenses (), the percentage of the total budget spent on administrative expenses, the percentage spent on fundraising expenses, and the percentage spent on program expenses for supersized charities. Administrative expenses include overhead, administrative staff and associated costs, and organizational meetings. Fundraising expenses are what a charity spends to raise money, and program expenses are what the charity spends on the programs and services it exists to deliver. The sum of the three percentages does not add to because of rounding. # Charity Total Expenses($) AdministrativeExpenses(%) FundraisingExpenses(%) ProgramExpenses(%) 1 American Red Cross 3,354,177,445 3.9 3.8 92.1 2 World Vision 1,205,887,020 4.0 7.5 88.3 3 Smithsonian Institution 1,080,995,083 23.5 2.6 73.7 4 Food For The Poor 1,050,829,851 0.7 2.4 96.8 5 American…arrow_forwardIdentify several types of manufacturing companies for which process costing would be an appropriate product-costing system. What characteristics do the products of these companies have that would make process costing a good choice? How is process costing similar and different in a second or later processing department?arrow_forwardA responsibility accounting system measures the performance of each of the following centers except 16 Multiple Cholce Ask Control center. Cost center. Profit center. Investment center.arrow_forward
- Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw Hill