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Constructing efficient strata boundaries in stratified sampling using survey cost

Reddy, Karuna G. and Khan, Mohammad G.M. (2023) Constructing efficient strata boundaries in stratified sampling using survey cost. Heliyon, 9 (11). pp. 1-20. ISSN 2405-8440

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Abstract

For maximum precision in population parameter estimation under the Stratified sampling design,
the optimum strata boundaries (OSB) could be constructed based on a continuous study variable
rather than a set of categorical variables. If constructed optimally, the OSB results in homogenous
units within each stratum leading to optimal stratum sample sizes (OSS) as well. The OSB and
OSS may not remain optimum if the problem is considered in terms of a fixed total sample size,
especially when a survey design involves a fixed budget. This article suggests a methodology for
computing the OSB and OSS when the per unit stratum measurement costs for the survey or its
probability density function are known. To plan for such a stratified survey, we demonstrate a
design-based stratification empirically by using Wave 18 of the HILDA Survey general release
dataset where we estimate the mean level of Gamma-distributed annual total disposable income
in Australia, which could potentially be an important variable for policy decision-making. We
also provide numerical illustrations for hypothetical study variables that follow exponential and
right-triangular distributions respectively. The findings indicate that the suggested method is
satisfactory in the sense that it is either more efficient or relatively comparable with other
methods aimed at improving the accuracy of population parameter estimates. The proposed
technique has been implemented in the updated stratifyR package.

Item Type: Journal Article
Subjects: H Social Sciences > HA Statistics
Divisions: School of Information Technology, Engineering, Mathematics and Physics (STEMP)
Depositing User: Karuna Reddy
Date Deposited: 01 Feb 2024 03:44
Last Modified: 01 Feb 2024 03:44
URI: https://repository.usp.ac.fj/id/eprint/14410

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