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# Federal Regulations

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Assume that federal regulations require that the average smoke stack concentration of a certain industrial pollutant must not exceed 135 ppm. The EPA suspects one factory is in violation.The EPA randomly collects 31 independent specimens of smoke from the factory smokestack,one for each day in October and performs extensive analysis. Results are 147,151,122,107,136,139,141,153,138,111,155,147,165,148,150,123,106,137,138,142,154,139,109,157,146,168,145,153,120,104 and 130. Discuss how each part[factory management and the EPA]might argue its case on sound fiscal reasoning. Assume each party has competent advisers and their position should be sound. Include appropriate graphs and charts.

##### Solution Summary

Assume that federal regulations require that the average smoke stack concentration of a certain industrial pollutant must not exceed 135 ppm. The EPA suspects one factory is in violation.The EPA randomly collects 31 independent specimens of smoke from the factory smokestack,one for each day in October and performs extensive analysis. Results are 147,151,122,107,136,139,141,153,138,111,155,147,165,148,150,123,106,137,138,142,154,139,109,157,146,168,145,153,120,104 and 130. Discuss how each part[factory management and the EPA]might argue its case on sound fiscal reasoning. Assume each party has competent advisers and their position should be sound. Include appropriate graphs and charts.

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