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A Firm Is Experiencing Theft Problems at Its Warehouse -Aone Percent Increase in the Level of Unemployment in the Consultant

Question 34

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:
 DEPENDENT VARIAELE:  T  R-SQUARE  F-RATIO  P-VALUE ONF  OESERVATIONS: 270.779342.380.0001 PARAMETER  STANDARD  VARIAELE  ESTMATE  ERROR  T-RATIO  P-VALUE  INTERCEPT 5150.431740.722.960.0068 G 480.92130.653.680.0012 U 211.075.02.810.0095\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}
-Aone percent increase in the level of unemployment in the county results in an increase in losses due to theft of __________ more losses per week.


A) $75
B) $211
C) $280
D) $460

Correct Answer:

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