Ch. 14.2

Charity Navigator is America's leading independent charity evaluator. The data in the Excel Online file below 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. 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. Construct a spreadsheet to answer the following questions. Due to a recent change by Microsoft you will need to open the XLMiner Analysis ToolPak add-in manually from the home ribbon. Screenshot of ToolPak a. Choese the correct scatter thagram with fundraising expenses (\%) ) the borizontal axis and program mpentes (W) on the vertical akis. The correct scatter fiagram is osoft Excel: Structured Activity D. +20 10 5 10 15 20 25 Looking at the data, do there appear to be any outliers and/or influential observations? The scatter diagram indicate potential influential obrervation(s). If there are potemial influential observations, select the correciponding numbers of charity oroarizations as indicalted in the Excel online file above, If there are no potential intluential observations, select "None". The scatter diagram indicate potential outlier(s). If there are potential outliers, select the corresponding numbers of charity orgabizations as Indicated in the Excel Online file above, If there are no potential outilers, select "None". b. Develop an estimated regression equation that could be used to predict program expenses (\%) given fundralsing expenses (%) Program Expenses % (pred) = ( 6+ Fundraiaing Expenses (%)( to 2 decimals) c. Does the value for the slope of the estimated regression equation make sense in the context of this problem situation? The slope of the estimated reoression equation is . Thus, for evecy 1% increase in the amount spent on slope and value seem to make sense in the context of this problem situation (to 2 decimals). fundraising the percentage spent on program expresses will d. Use residual analysis to determine whether any outliers and/or influential observations are present. Briefly summarize your findings and conclusions. Observation is an outlier because it has the largest absolute value of the standardized residual. Observation Q is an influential observation because it has the highest leverage