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Question: Using ADDGEN, generate a stratified random sample of size 200 from Lockhart City with your stratification in Exercise and proportional allocation. Find the responses using the SURVEY program. Estimate the average price a household in Lockhart City is willing to pay for cable service and the average number of TVs per household in Lockhart City. How do these estimates compare with those obtained with simple random sampling and sample mean and ratio estimates? Which estimates are the most precise?
Exercise: Use any considerations you like to divide Stephens County into strata. Your stratification should divide Lockhart City into approximately five strata. Why did you choose your stratification variable? Count the total number of households in each of your strata. (You may use the ADDGEN program to do this.) The remainder of these exercises concern Lockhart City only.
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