A Firm Is Experiencing Theft Problems at Its Warehouse -Hiring One More Guard Per Week Will Decrease the Losses

question 16

Multiple Choice

A firm is experiencing theft problems at its warehouse. A consultant to the firm believes that the dollar loss from theft each week (T) depends on the number of security guards (G) and on the unemployment rate in the county where the warehouse is located (U measured as a percent) . In order to test this hypothesis, the consultant estimated the regression equation T = a + bG + cU and obtained the following results:
$$\begin{array} { c l l l l l } \text { DEPENDENT VARIAELE: } & \text { T } & \text { R-SQUARE } & \text { F-RATIO } & \text { P-VALUE ONF } \\\text { OESERVATIONS: } & 27 & \mathbf { 0 . 7 7 9 3 } & 42.38 & \mathbf { 0 . 0 0 0 1 } & \\& & \text { PARAMETER } & \text { STANDARD } & & \\\text { VARIAELE } & & \text { ESTMATE } & \text { ERROR } & \text { T-RATIO } & \text { P-VALUE } \\\text { INTERCEPT } & & 5150.43 & 1740.72 & \mathbf { 2 . 9 6 } & \mathbf { 0 . 0 0 6 8 } \\\text { G } & & - 480.92 & 130.65 & - \mathbf { 3 . 6 8 } & \mathbf { 0 . 0 0 1 2 } \\\text { U } & & 211.0 & 75.0 & \mathbf { 2 . 8 1 } & \mathbf { 0 . 0 0 9 5 }\end{array}$$
-Hiring one more guard per week will decrease the losses due to theft at the warehouse by _________ per week.

• A) $5,150
• B) $211
• C) $130
• D) $480.92

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