Can you answer this asap for my assignment You work in the head office for a maj

Question

Can you answer this asap for my assignment You work in the head office for a major bank. Your bank has its own credit card, and only customers of your bank can have this credit card. You want to investigate the total of all credit card month end outstanding balances. You have limited demographic information available: age, gender, employer, marital status address (with postal code and province), number of bank accounts, number of other credit cards, savings account balances, and chequing account balances. Suggest a variable that would be good for stratified random sampling. Justify your selection. If you don't think such a v state that and justify your answer. Suggest a variable that would be good for one stage cluster sampling-Justify your selection. If you don't think such a variable is available, state that and justify your answer. Suggest a variable that would be good for ratio estimation. Justify your selection. If you don't think such a variable is available, state that and justify your answer.

Explanation / Answer

a) Marital status is a good variable for stratified sampling. Let us say we have 4 levels in marital status - Single, Married, Divorced, Widowed.

Stratified sampling is the method in which the population is divided in to many strata. From each strata, a random sample is taken and all these are combined to form the final sample. This way all the strata are represented in the final sample, even the minorities and smallest of subgroups.

You can make even complex strata by combining 2 or more variables. say combining gender(2 levels and marital status (4 levels). You can get 4*2 = 8 strata as follows: male-single, female-single, male-married, female-married, male-divorced, female-divorced, male-widowed, female-widowed. Imagine taking sample from each of the 8 strata, you will get a fantastic and dynamic representation of all groups.

b) Of the cluster sampling types, the most popular one is the area clustering. Before that, what is cluster sampling? A cluster is a group of people within a population who are homogenous with respect to a certain combination of elements but are heterogeneous with respect to other clusters.

Using the variable address to create clusters can be possible if the cities or provinces are clearly available. If that part can be seperated as one variable. Say 10 provinces are available. All the customers of these 3 provinces form the sample of single stage cluster sampling. Or if you require 100, then randomly select 100 out of these 3 put together.

c) Savings account balance can be used for ratio estimation. Ratio estimation is used to estimate the population parameter using the sample parameter. If the variable of interest is outstanding credit card balance, a good auxillary variable can be saving account balance. The relationship between them can be established and this can be used if there is less bias.

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.