Liz just completed a test where her baseline assumtion is that the local paint factory is following EPA regulations in only disposing of water that has 1 part per million of the toxin phenol. This level is considered safe. If she can show at the alpha level of 0.05 that they are releasing water that on average has greater than 1 parts per million of phenol, then she can blow the whistle, bring a lawsuit and put this company out of business. As she is preparing she remembers that it is possible to make type 1 and type 2 errors. Provide a brief scenario about the criteria for making each of these errors and their consequences. Be sure to write your response with respect to this specific setup. Type 1 Error Type 2 Error Reject null when null is correct, we would essentially put many people out of work when in fact their company was following all of the proper EPA procedures. Reject null when null is false, we would essentially put many people out of work when in fact their company was not following all of the proper EPA procedures. Fail to reject null when null is incorrect: We would basically continue under the assumption that the paint company is following the EPA regulations when they infact are not, endangering everyone who uses this river. Fail to reject null when null is correct: We would basically continue under the assumption that the paint company is following the EPA regulations when they infact are following regulations, keeping the river safe.

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Liz just completed a test where her baseline assumtion is that the local paint factory is following EPA regulations in only disposing of water that has 1 part per million of the toxin phenol. This level is considered safe. If she can show at the alpha level of 0.05 that they are releasing water that on average has greater than 1 parts per million of phenol, then she can blow the whistle, bring a lawsuit and put this company out of business. As she is preparing she remembers that it is possible to make type 1 and type 2 errors. Provide a brief scenario about the criteria for making each of these errors and their consequences. Be sure to write your response with respect to this specific setup.

Type 1 Error
Type 2 Error

Reject null when null is correct, we would essentially put many people out of work when in fact their company was following all of the proper EPA procedures.
Reject null when null is false, we would essentially put many people out of work when in fact their company was not following all of the proper EPA procedures.
Fail to reject null when null is incorrect: We would basically continue under the assumption that the paint company is following the EPA regulations when they infact are not, endangering everyone who uses this river.
Fail to reject null when null is correct: We would basically continue under the assumption that the paint company is following the EPA regulations when they infact are following regulations, keeping the river safe.

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