2. A corporation wishes to obtain information on the effectiveness of a busi- ness machine. A number of division heads will be interviewed by telephone and asked to rate the equipment on a numerical scale. The divisions are located in North America, Europe and Asia. Hence, stratified sampling is used. The costs are larger for interviewing division heads outside North America. The accompanying table gives the costs per interview, approx- imate variances of the ratings, and N that have been established. The corporation wants to estimate the average rating with V(st) = 0.1. North America C₁ = $9 Europe C2 = $25 Asia C3 = $36 σ = 2.25 တို - σ = 3.24 0 σ = 3.24 N₁ = 112 N2 = 68 N3 = 39 (a) You recommended the use of optimal allocation (the best allocation scheme). Find the sample size n and the total sampling cost. (b) Your colleague argues that Neyman allocation is better because the total sample size n is smaller. Show him that your method is better because the total cost of Neyman allocation is larger.

Holt Mcdougal Larson Pre-algebra: Student Edition 2012
1st Edition
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Chapter11: Data Analysis And Probability
Section11.4: Collecting Data
Problem 8E
Question
2. A corporation wishes to obtain information on the effectiveness of a busi-
ness machine. A number of division heads will be interviewed by telephone
and asked to rate the equipment on a numerical scale. The divisions are
located in North America, Europe and Asia. Hence, stratified sampling is
used. The costs are larger for interviewing division heads outside North
America. The accompanying table gives the costs per interview, approx-
imate variances of the ratings, and N that have been established. The
corporation wants to estimate the average rating with V(st) = 0.1.
North America
C₁ = $9
Europe
C2 = $25
Asia
C3 = $36
σ = 2.25
တို -
σ = 3.24
0
σ = 3.24
N₁ = 112
N2 = 68
N3 = 39
(a) You recommended the use of optimal allocation (the best allocation
scheme). Find the sample size n and the total sampling cost.
(b) Your colleague argues that Neyman allocation is better because the
total sample size n is smaller. Show him that your method is better
because the total cost of Neyman allocation is larger.
Transcribed Image Text:2. A corporation wishes to obtain information on the effectiveness of a busi- ness machine. A number of division heads will be interviewed by telephone and asked to rate the equipment on a numerical scale. The divisions are located in North America, Europe and Asia. Hence, stratified sampling is used. The costs are larger for interviewing division heads outside North America. The accompanying table gives the costs per interview, approx- imate variances of the ratings, and N that have been established. The corporation wants to estimate the average rating with V(st) = 0.1. North America C₁ = $9 Europe C2 = $25 Asia C3 = $36 σ = 2.25 တို - σ = 3.24 0 σ = 3.24 N₁ = 112 N2 = 68 N3 = 39 (a) You recommended the use of optimal allocation (the best allocation scheme). Find the sample size n and the total sampling cost. (b) Your colleague argues that Neyman allocation is better because the total sample size n is smaller. Show him that your method is better because the total cost of Neyman allocation is larger.
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