CED Data Analysis & Reporting 3 — Questions and Answers
Question 1: A program director wants to assess whether an intervention caused improved outcomes. Which study design provides the strongest causal evidence?
- Case study
- Randomized controlled trial (Correct answer)
- Cross-sectional survey
- Focus group analysis
Correct answer: Randomized controlled trial
A randomized controlled trial, with random assignment to treatment and control groups, provides the strongest evidence of causation.
Question 2: In a trend analysis, data points consistently rise for 18 months then sharply drop. What should an executive director investigate first?
- Change the reporting period to hide the drop
- Identify whether an external event or policy change coincides with the drop (Correct answer)
- Assume the trend will resume and take no action
- Replace the analyst who produced the report
Correct answer: Identify whether an external event or policy change coincides with the drop
A sharp break in trend often signals an external event, policy shift, or data quality issue that requires investigation before drawing conclusions.
Question 3: Which metric is most appropriate for evaluating the efficiency of a nonprofit's use of donated funds?
- Total revenue
- Program expense ratio (Correct answer)
- Gross profit margin
- Return on equity
Correct answer: Program expense ratio
The program expense ratio measures the percentage of expenses directed to programs versus overhead, indicating funding efficiency.
Question 4: An organization collects data via voluntary surveys. Which limitation must an executive director consider when interpreting results?
- Survey data is always more accurate than administrative data
- Voluntary response bias may skew results toward those with strong opinions (Correct answer)
- Surveys cannot be used for quantitative analysis
- All respondents represent the full population equally
Correct answer: Voluntary response bias may skew results toward those with strong opinions
Voluntary surveys are susceptible to response bias because those with stronger feelings are more likely to participate, skewing the sample.
Question 5: A CED uses a regression model to forecast next year's grant revenue. Which output most directly measures how well the model fits historical data?
- The intercept value
- R-squared (R²) (Correct answer)
- The number of variables included
- The sample size
Correct answer: R-squared (R²)
R-squared indicates the proportion of variance in the dependent variable explained by the model, measuring goodness of fit.
Question 6: Which approach best ensures data integrity when multiple staff members enter program data into a shared system?
- Allow free-text entry for all fields to maximize flexibility
- Implement validation rules, dropdown menus, and required fields (Correct answer)
- Restrict data entry to the executive director only
- Collect data manually and consolidate monthly
Correct answer: Implement validation rules, dropdown menus, and required fields
Validation rules and standardized input options reduce entry errors and ensure consistent, reliable data across multiple users.
Question 7: A year-over-year comparison shows program participation dropped 15%. Which additional data point is essential before concluding performance declined?
- The organization's mission statement
- Whether eligibility criteria or the target population changed (Correct answer)
- The names of the program staff
- The color scheme of the annual report
Correct answer: Whether eligibility criteria or the target population changed
Changes in eligibility rules or the target population can explain participation drops without indicating actual performance decline.
CED Data Analysis & Reporting 3
A program director wants to assess whether an intervention caused improved outcomes.
Which study design provides the strongest causal evidence?