Constructing efficient strata boundaries in stratified sampling using survey cost

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 withi...

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Main Authors: Karuna G. Reddy, M.G.M. Khan
Format: Article
Language:English
Published: Elsevier 2023-11-01
Series:Heliyon
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2405844023086152
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author Karuna G. Reddy
M.G.M. Khan
author_facet Karuna G. Reddy
M.G.M. Khan
author_sort Karuna G. Reddy
collection DOAJ
description 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.
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spelling doaj.art-d0a17d3a271e4f5da9755b4d0fc20e7d2023-12-02T07:02:09ZengElsevierHeliyon2405-84402023-11-01911e21407Constructing efficient strata boundaries in stratified sampling using survey costKaruna G. Reddy0M.G.M. Khan1Corresponding author.; School of Information Technology, Engineering, Mathematics and Physics, The University of the South Pacific, Suva, FijiSchool of Information Technology, Engineering, Mathematics and Physics, The University of the South Pacific, Suva, FijiFor 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.http://www.sciencedirect.com/science/article/pii/S2405844023086152Optimum stratificationStratified random samplingSurvey costSample allocationDynamic programming
spellingShingle Karuna G. Reddy
M.G.M. Khan
Constructing efficient strata boundaries in stratified sampling using survey cost
Heliyon
Optimum stratification
Stratified random sampling
Survey cost
Sample allocation
Dynamic programming
title Constructing efficient strata boundaries in stratified sampling using survey cost
title_full Constructing efficient strata boundaries in stratified sampling using survey cost
title_fullStr Constructing efficient strata boundaries in stratified sampling using survey cost
title_full_unstemmed Constructing efficient strata boundaries in stratified sampling using survey cost
title_short Constructing efficient strata boundaries in stratified sampling using survey cost
title_sort constructing efficient strata boundaries in stratified sampling using survey cost
topic Optimum stratification
Stratified random sampling
Survey cost
Sample allocation
Dynamic programming
url http://www.sciencedirect.com/science/article/pii/S2405844023086152
work_keys_str_mv AT karunagreddy constructingefficientstrataboundariesinstratifiedsamplingusingsurveycost
AT mgmkhan constructingefficientstrataboundariesinstratifiedsamplingusingsurveycost