You plan to draw a sample of 1,000 from the population of a large state in order to estimate the average value of individual life insurance coverage. A list of all state residents and their incomes is available from the state revenue department. Which sampling design will minimize sampling error?
A) a simple random sample, using a computer program to generate random numbers
B) a proportionate stratified random sample, using income categories as strata
C) a multistage cluster sample, using counties as clusters
D) a quota sample, with quotas set on the basis of income

Question

Quizplus · Accepted Answer

A proportionate stratified random sample using income categories as strata will minimize sampling error by ensuring that all income groups are appropriately represented in the sample, leading to more accurate estimates of the average life insurance coverage.

You Plan to Draw a Sample of 1,000 from the Population