A clean air standard requires that vehicle exhaust emissions not exceed specifie

Question

A clean air standard requires that vehicle exhaust emissions not exceed specified limits for various pollutants. Suppose state regulators double check a random sample of cars that a disreputable repair shop has certified as passing. They will revoke the shop’s license if they find significant evidence that the shop is certifying vehicles that do not meet the emissions standards. Consider the following hypotheses:

H0: It is not the case that the repair shop is certifying cars that fail the emissions standards. H1: The repair shop is certifying cars that fail the emissions standards.

g) Will the power be greater if they use a significance level of = 0.05 or = 0.10? Why?

h) Will the power be greater if the repair shop’s inspectors are only a little out of compliance or a

lot? Why?

Explanation / Answer

Solutions:

g) The power would be greater with a significance level of =.10 because and the power have a direct relationship.

h) The power would be greater the more the inspectors comply due to the fact that the more they comply, the higher the probability that the null can be rejected.

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