CED Data Analysis & Reporting 2

Question 1

An executive director notices that monthly revenue reports show high variance. Which statistical measure best quantifies this inconsistency?

Accepted Answer

Standard deviation

Answer

Standard deviation measures the spread of data points around the mean, directly quantifying variance in revenue figures.

Question 2

A nonprofit's program data shows a correlation coefficient of -0.85 between staff turnover and client satisfaction. What does this indicate?

Accepted Answer

As turnover increases, satisfaction tends to decrease

Answer

A correlation of -0.85 is a strong negative relationship, meaning higher turnover is associated with lower client satisfaction.

Question 3

Which data visualization type is most appropriate for showing how a budget is distributed across multiple program areas?

Accepted Answer

Pie chart

Answer

A pie chart is ideal for displaying part-to-whole relationships, such as how total budget is divided among departments.

Question 4

A CED candidate reviews a report where the mean program cost is $50,000 but the median is $28,000. What does this suggest about the data?

Accepted Answer

A few very high-cost programs are skewing the average upward

Answer

When the mean greatly exceeds the median, a small number of high outlier values are pulling the mean upward in a right-skewed distribution.

Question 5

Which type of report is most useful for comparing an organization's performance metrics against industry benchmarks?

Accepted Answer

Benchmarking report

Answer

A benchmarking report directly compares an organization's key metrics to peer organizations or industry standards.

(CED) Certified Executive Director Practice Test