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Median is usually in the? Why is it there? In what kind of data is it there?
Due to right-skewed nature of most income data, the median is usally the preferred center
Census
Collects data from ALL individuals in a population
Random sample
Much easier than measuring everyone
Simple random sample (SRS)
Sample in which every group of a given size has an equal chance of being chosen
Cluster random sample
Population is divided into clusters of individuals that are near one another
SRS of clusters is taken
All individuals within each cluster are sampled
Stratified random sample
Population is divided into strata, based on a similar characteristic
SRS within each stratum is taken
Selected individuals are combined into larger sample
Difference between cluster & stratified samples
Cluster: Start by grouping (ideally, heterogenous)
Stratified: Start by grouping (ideally, homogenous)
Systematic ransom sample
Randomly chose a start point, then sample at a fixed periodic interval
Primary advantage
Easy to collect sample, especially in situations in which individuals in the population are lined up in some way
What do random samples tend to provide?
Random samples, when well-executed, tend to provide representative samples
A simple random sample (SRS) gives?
A simple random sample (SRS) gives every group of ‘n’ individuals an equal chance of selection
Cluster sampling creates?
Cluster sampling creates groups, then randomly sample within each group
Bias
Measure of accuracy (are you centered at the true value you want to be estimated)
Variation
Precision (How much distance between potential estimates)
Non random sample can lead to?
Non random sample can lead to systemic overestimation
Simple random sample characteristics
Unbiased (accurate)
Moderate variability (moderate precision)
Simple random sample (SRS) advantages
Unbiased
Easy to explain
In certain cases, can be easy to perform
Simple random sample (SRS) disadvantages
In certain scenarios, can be difficult to implement
May not be as precise as other methods
Cluster random sample characteristics
Unbiased (accurate)
High variability (Not precise)
Cluster random sample advantages
Unbiased
Can be easy to perform
Cluster random sample disadvantages
If clusters are homogenous but very different from one another, can have very high variability
May get an estimate that is very far from the “truth”
Stratified random sample characteristics
Unbiased (accurate)
Low variability (precise)
Stratified random sample advantages
Unbiased
When strata are homogenous, tends to have low variability
Stratified random sample disadvantages
Can be very difficult to implement
Random sampling tends to?
Random sampling tends to provide unbiased estimates
Cluster random sampling is effective when?
Cluster randoms sampling is effective when clusters are heterogenous and similar to one another
Stratified random sampling is most effective when?
Stratified random sampling is most effective when strata is homogenous