Decision Theoretic Analysis of Pollutants Emissions Monitoring Procedures
The management of an industrial plant (called the ‘inspectee’) may be authorized to release some amount of pollutant per unit time into the environment, e.g., air or water. An environmental agency (called the ‘inspector’) may supervise with the help of randomly sampled measurements whether or not the releases are larger than the permitted ones. The question is what kind of monitoring procedure should be used in order that the inspector meets his responsibility best.
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