As in Exercise 33 state regulators are checking up on
As in Exercise 33, state regulators are checking up on repair shops to see if they are certifying vehicles that do not meet pollution standards.
a) In this context, what is meant by the power of the test the regulators are conducting?
b) Will the power be greater if they test 20 or 40 cars? Why?
c) Will the power be greater if they use a 5% or a 10% level of significance? Why?
d) Will the power be greater if the repair shop’s inspectors are only a little out of compliance or a lot? Why?
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