ESGC6121 Survey Techniques and Sampling Design

Test 2
22 May 2013
Answer all questions: Total= 30 marks
1. The manager of a car service center selected a simple random sample of n=50 customers
from the service record of 1,000 customers, to find out the proportion that are satisfied
with the service and the amount spent at the center. Survey result shows that 45 of them
are satisfied, and the mean amount spent is RM126.96, with a standard deviation of
RM79.84.
(5 marks)
a) Estimate the population proportion p and place a bound on the error of estimation.
N
n
y
p
q
fpc
Var p
SE
B

1000
50
45
0.9
0.1
0.95
0.001745
0.041772
0.083544

b) Estimate the population mean and place a bound on the error of estimation.
Mean =126.96
N
n
sd
s sq
fpc
Var (y bar)
SE
B

1000
50
79.84
6374.426
0.95
121.1141
11.00518
22.01037

2. If the survey in Q1 above is to be repeated to achieve a bound of error B=RM10.

Determine the sample size to achieve this bound of error.
(2 marks)
2
N
n
=203.3 round up to 204.
( N 1) D 2
3. In question 1 above, suppose the manager selected 25 older customers out of a total of
600 customers and 25 new customers out of a total of 400 new customers, and the results
of the survey shows that the mean value for old customers is RM154.24 with a standard
deviation of RM100.13, and the mean value for new customers is RM98.68 with a
standard deviation of RM37.91. Find the overall mean value, and place a bound on the
error of estimation. What would be the sample size for each stratum (old and new
customers) if he used proportional allocation.
(5 marks)
Old
600
25
154.24
100.13

N
n
Mean
SD

yst

1
N

New
400
25
98.68
37.91

N y
i 1

=132.016

var (y bar st) =

Old

1
N2

si2

N
(
N

n
)

i
i
i
n
i 1
i

New

N
n
N-n
Mean
SD
s sq
Var
SE
B

600
25
575
154.24
100.13

400
25
375
98.68
37.91

10026.02
132.016 y bar st
146.982
12.12362
24.24723

1437.168

n1 = 50*.6 =30
n2 =50*.4 = 20
4. Based on answers to Q1 and Q3, calculate the design effect for the stratified random
sampling.
(1 mark)
Deft =146.982/121.1 =1.21
5. Referring to Q3, above, find the required sample size to achieve a margin of error of
RM15, using proportional allocation, and allocate the sample to each stratum. (4 marks)
L

Q5

n
Old
600
25
575
154.24
100.13

N
n
N-n
Mean
SD
s sq

New
400
25
375
98.68
37.91
1437.1
68
0.4
5.75E+
08

6590477
380

57486
7.2

6590477.
38

denominator

6015610
140
56.25
6015610.
14
6284047
7.4

104.8763
1

Num
D
right side of
dem

n = 105

i 1

2
i

2
i

/ ai

N 2 D N i i2
i 1

10026.01
69
0.6

n1 =105*.6 =63
n2 =105*.4 =42
6. A company has its equipment inventories listed separately by department. From the 15
departments in the company, 5 are to be randomly selected by an auditor, who will then
check to make sure all the equipment inventories are properly identified and located. The
proportion of equipment items not properly identified is of interest to the auditor. The
data are given below. Estimate the proportion of equipment items not properly identified
and place a bound on the error of estimation. (note: based on single stage cluster
sampling).
(3 marks)
Department

Number of equipment
items
12
26
10
40
15

1
2
3
4
5

Number of equipment items

not properly identified
2
3
2
3
1

Q6
m

Department

Number
Number
of
of
equipment equipment
items items not
properly
identified

12

26

10

40

15

M bar
p

103
20.6
0.10679

11

a-pm
sq
0.7184 0.5161
48
68
0.2233 0.0498
04
65
0.9320 0.8686
4
99
1.2718 1.6175
4
77
0.6019 0.3623
4
32
3.4146
4
sp sq

0.8536

a
i 1
n

Ni n 2
2 sp
V ( p ) i 1
NnM
m

s 2p

a
i 1

2
p mi

n 1

0.00031
4

fpc

0.00026
8
0.01637
7
0.03275
5

var p
se
B

7. Suppose that for the company in question 8) the 15 departments have the number of
equipment items as shown in the table below. Select a sample of 5 departments with
probabilities proportional to the number of equipment items, and then choose 6 items
from each. Let 33 be the random start. Which 5 departments will be selected? Calculate
the overall sampling fraction, and sampling fraction for stage 1 and stage 2 for each of
the selected departments.
(4 marks)
Department

1
2
3

Number
equipment
items
12
10
27

4
5

40
35

6
7
8

15
18
10

9
10
11

31
26
22

12
13
14

19
16
33

15

18
0.09036
1

cum
f1

f2

12
22
49
89
124
139
157
167
198
224
246
265
281
314
332

0.40662
7

0.222222

0.090361

0.52710
8

0.171429

0.090361

0.15060
2

0.6

0.090361

0.33132
5

0.272727

0.090361

0.49698
8

0.181818

0.090361

F
Interval
b
Fb
33
66.4
66.4
66.4
66.4

11.0666
7
66.4
6
66.4
33
99.4
165.8
232.2
298.6

8. Answer True of False (T or F) for each of the following statements:

a)

b)

(6 marks)

The strategy to reduce travelling cost is to select fewer clusters and more elements
within selected clusters for any budget allocation for the survey.
T
In stratified random sampling, equal allocation produces the same estimates as
proportional allocation when N1 N2.
F

The standard error of the mean is the standard deviation of the distribution of sample
means.
T
A single stage cluster sampling generally produces a smaller margin of error as
d)
compared to simple random sampling.
F
The margin of error for the mean at 95% confidence level is 2.58 times the standard
e)
error of the mean.
F
c)

f)

In stratified random sampling with proportional allocation, wi (the sample

distribution in per cent) is the same as Wi (the population distribution in per cent)

T
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