NGO operates an online campaign to motivate contribution for child development. They design a new message and want to test its effectiveness

INSTRUCTIONS TO CANDIDATES

ANSWER ALL QUESTIONS

Dataset: 

An NGO operates an online campaign to motivate contribution for child development. They design a new message and want to test its effectiveness.

The NGO sent out fund-raising messages to 297 donors who all contributed various amount of contribution. Each donor received either the old message or the new one, labeled in the dataset as treatment=1. In addition to each individual’s contribution (in k$) and which message this person received (treatment=1 if new message, otherwise 0), the NGO also manages to collect data concerning the donor’s individual characteristics: gender (male=1 if the person is male and 0 if the person is female), income (in k$), and age (in year).

Please write a report answering the following questions.

1. Make a frequency table of the donor’s income. Motivate how many categories you want to divide them into and the range of each category.

2. Summarize the distribution of contribution, age, and gender of all the donors in this sample with numerical measures you see proper.

3. Summarize the contributions in each treatment using the same set of measures as in question 2.

4. Is the treatment (new message) effective in increasing people’s contribution? Is this relationship causal or merely correlational?

5. Among the subgroup of donors with income more than 15k, is the treatment effective in increasing their contribution?

6. Pick one of the two multiple linear regressions to explain contribution. Which one do you think can explain the variance of contribution better? Why?

a. contribution~age+male+treatment

b. contribution~income+treatment

7. Give your interpretation of the coefficients of treatment and income in the following regression: contribution~treatment+income+age+male

8. Use the model in question 6 to predict the contribution of

a. Mr. Benz, age 62, income=45k, received the old message

b. Miss. Valaria, age 27, income=19k, received the new message

9. The NGO is planning to send out invitation for contribution to 1000 more people. How much more contribution could be raised if they use the new message instead of the old one?

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