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SOLID WASTE CHARACTERIZATION BY BUSINESS ACTIVITIES
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15.3 SIC Code Grouping Validation
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The initial grouping of business to characterize solid waste generation was based on SIC codes. U.S. environmental regulators typically use SIC codes to report waste generation data of business sectors. The literature review indicated the use of SIC codes for this purpose has not been statistically validated. This section discusses the validation procedure and results to justify this usage. The following statistical validation procedure was used. Two analyses were conducted, rst to examine the variability within SIC code groups and second to examine the variability between SIC code groups:
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1 Develop 95 percent con dence intervals on the mean composition percentage for
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each material in each of the 65 SIC code groups. 2 Conduct one-way ANOVA (analysis of variance) on each waste material across all waste groups at the 95 percent con dence level. 3 Validate the consolidation of businesses by SIC codes to investigate: a Similar variation exists within wastes groups (verify each material s con dence interval is equal to or less than plus or minus 5 percentage points) b Signi cant variation exists between waste groups (verify the ANOVA results are statistically different for each waste material) Ninety- ve percent con dence intervals were developed for each waste material in each of the 65 SIC code groups using the following equation: x t / 2
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x = the average waste material composition percentage for the random sample t / 2 = the t-value with v = n 1 degrees of freedom s = the sample standard deviation n = the sample size
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All solid waste materials were within the desired 5 percent con dence interval to validate the grouping of SIC codes. The minimum range was 0.5 percent and the maximum range was 4.6 percent. Table 15.1 displays an example of the results for organic wastes in SIC code group 01: agriculture production crops. The 95 percent con dence interval range of 2.4 percent indicates that 95 percent of the mean percentages of organic waste for SIC code group 01 (agriculture production crops) will be between 19.6 percent and 24.4 percent. The 95 percent con dence interval 2.4 percent is well within the desired range of 5 percent to validate grouping material composition percentages based on SIC codes. One-way ANOVA was applied to examine difference between all 65 SIC code groups and materials. Table 15.2 is the one-way ANOVA for organic waste. As shown in the table, the test statistic (F = 1354.734) is significantly higher than
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TABLE 15.1 NINETY-FIVE PERCENT CONFIDENCE INTERVAL ON MATERIAL COMPOSITION PERCENTAGE EXAMPLE TO VALIDATE SIC CODE GROUPING (ORGANIC WASTE IN THE SIC CODE GROUP 01) MEAN NUMBER OF PERCENTAGE VARIANCE COMPANIES OF ORGANIC OF ORGANIC SURVEYED WASTE WASTE
SIC CODE
DESCRIPTION
95% CONFIDENCE INTERVAL (+/ )
Agricultural production crops
2.4%
F critical (F crit = 1.344158) at the 95 percent con dence level. This indicates the SIC code groups generate signi cantly different composition percentages for organic waste. All other waste compositions were also signi cantly different at the 95 percent con dence level. The results of the validations tests indicated that the 65 SIC code groups were effective to group businesses based on waste stream composition percentages (means and variances) at the 95 percent con dence level. The companies within each of the 65 SIC code groups generated equal waste stream composition percentages at the 95 percent con dence level. The 65 SIC code groups generated statistically different composition percentages of solid waste as validated by the ANOVA analysis at the 95 percent con dence level. The purpose of the next characterization phase is to cluster the 65 SIC code groups to determine which SIC code groups generate similar solid waste composition pro les as determined by the means and variances for each material.
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