A Firm Is Experiencing Theft Problems at Its Warehouse -If the Firm Hires 6 Guards and the Unemployment Rate

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:
$$\begin{array} { c l l l l l } \text { DEPENDENT VARIAELE: } & \text { T } & \text { R-SQUARE } & \text { F-RATIO } & \text { P-VALUE ONF } \\\text { OESERVATIONS: } & 27 & \mathbf { 0 . 7 7 9 3 } & 42.38 & \mathbf { 0 . 0 0 0 1 } & \\& & \text { PARAMETER } & \text { STANDARD } & & \\\text { VARIAELE } & & \text { ESTMATE } & \text { ERROR } & \text { T-RATIO } & \text { P-VALUE } \\\text { INTERCEPT } & & 5150.43 & 1740.72 & \mathbf { 2 . 9 6 } & \mathbf { 0 . 0 0 6 8 } \\\text { G } & & - 480.92 & 130.65 & - \mathbf { 3 . 6 8 } & \mathbf { 0 . 0 0 1 2 } \\\text { U } & & 211.0 & 75.0 & \mathbf { 2 . 8 1 } & \mathbf { 0 . 0 0 9 5 }\end{array}$$
-If the firm hires 6 guards and the unemployment rate in the county is 10% (U = 10) , what is the predicted dollar loss to theft per week?

A) $4,375 per week
B) $5,150 per week
C) $8,300 per week
D) $9,955 per week