The Crime Prevention Service for Business at Rutgers University School of Criminal Justice defines shrinkage as the difference between the inventory a business should have and what the:

Answer: ...business actually does have.

Explanation:

According to a study done in 2010, Retail Stores around $38 billion in Shrinkage making it quite a huge problem. Shrinkage according to the  Crime Prevention Service for Business at Rutgers University School of Criminal Justice is the difference between the inventory a business should have and what it actually does have meaning that Shrinkage refers to the unexplained losses in inventory during the year.

Shrinkage can happen due to a couple of reasons such as employee theft, book keeping errors and shoplifting.  

answer; coefficient of correlation;