14th Edition

ISBN: 9780135989005

Author: BERENSON

Publisher: PEARSON CO

Concept explainers

Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.

Linear Correlation

A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.

Regression Analysis

Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as p…

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Textbook Question

Chapter 14, Problem 3PS

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, of nonprofit size X 1 and Efficiency, a measurement of the percent of private donations remaining after fundraising expenses as a measured of nonprofit fundraising efficiency X 2 . The dependent variable Y is Commitment, a measurement of the percent of total expenses that are allocated directly to charitable service. Data are collected from a random sample of 98 nonprofit organizations, with the following results:

Chapter 14, Problem 3PS, A nonprofit analyst seeks to determine which variables should be used to predict nonprofit

a. State the multiple regression equation.

b. Interpret the meaning of the slopes. b 1 and b 2 , in this problem.

c. What conclusions can you reach concerning nonprofit charitable commitment?

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Chapter 14, Problem 2PS

Chapter 14, Problem 4PS

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Draw a scatter diagram with square feet of living space as the independent variable and selling price as the dependent variable and describe variable and describe the relationship between the size of a house and the selling price.

A company that focuses on research and development (R&D) is interested in the relationship between profit and some variables that can explain profit variations. They want to predict the profits of some new and exciting projects because some are risky. The predictor variables considered are: RISK which is a company derived metric, R&D which is the research and development costs, REGION (WC, EC and KZN) and average per capita income (INCOME in R1000.00). The analyst decides to estimate the regression function with the following response function. Ý (profit) = bo + b₁XRisk + b₂XR&D + b3Xwc + b4Xec + b5XINC Answer the following questions. 4.1. The analyst considered the fact that the effects of multicollinearity may influence some analytical and visual conclusions. Use the following results to show the process of establishing by using extra sums of squares whether there is that multicollinearity present or not. Explain and interpret in detail. SSR(X) = 2573.72, SSR(X₁) = 2600.7, SSR(X₂|…

A company that focuses on research and development (R&D) is interested in the relationship between profit and some variables that can explain profit variations. They want to predict the profits of some new and exciting projects because some are risky. The predictor variables considered are: RISK which is a company derived metric, R&D which is the research and development costs, REGION (WC, EC and KZN) and average per capita income (INCOME in R1000.00). The analyst decides to estimate the regression function with the following response function. Y (profit) = bo + b₁XRisk + b₂XR&D +b3Xwc + b₁XEC + b5XINC Answer the following questions. 4.1. The analyst considered the fact that the effects of multicollinearity may influence some analytical and visual conclusions. Use the following results to show the process of establishing by using 5 extra sums of squares whether there is that multicollinearity present or not. Explain and interpret in detail. SSR (X) = 2573.72, SSR(X₁) = 2600.7, SSR(X₂|…

Chapter 14 Solutions

EP BASIC BUS.STATS-ACCESS (18 WEEKS)

Ch. 14 - For this problem, use the following multiple...Ch. 14 - For this problem, use the following multiple...Ch. 14 - A nonprofit analyst seeks to determine which...Ch. 14 - Profitability remains a challenge for banks and...Ch. 14 - The production of wine is a multibillion-dollar...Ch. 14 - Human resource managers face the business problem...Ch. 14 - Prob. 7PS Ch. 14 - Prob. 8PS Ch. 14 - The following ANOVA summary table is for a...Ch. 14 - The following ANOVA summary table is for a...

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Solution Summary: The author explains the multiple regression equation for nonprofit organizations. The table of results shows 5 columns: intercept, revenue, efficiency, and slope.

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