In many ways, nonprofit organizations are run much like other businesses. Charity organizations with larger operations would be expected to have a larger staff, although some have more overhead that others. Table 12.5.11 shows the number of paid staff members of charity organizations as well as the amounts of money (in millions of dollars) raised from public donations, government payments, and other sources of income.
- Find the regression equation to predict staff levels from the contributions of each type for these charities. (You will probably need to use a computer for this)
- How many additional paid staff members would you expect to see, on average, working for a charity that receives $5 million more than public donations than another charity (all else equal)?
- To within approximately how many people can the regression equation predict the staffing levels of these charities from their revenue figures?
- Find the predicted staffing level and its residual for the American Red Cross.
- What is the result of the F test? What does it tell you?
- Does revenue from public donations have a significant impact on staffing level, holding other revenues fixed? How do you know?