STAT 4260 HW9 - Austin Wen STAT4260 HW9 7.1 Suppose that a...

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Austin Wen STAT4260 HW9 7.1 Suppose that a home mortgage company has N mortgages numbered serially in the order that they were granted over a period of 20 years. There is a generally increasing trend in the unpaid balances because of the rising cost of housing over the years. The company wishes to estimate the total amount of unpaid balances. Should you employ a systematic or a simple random sample? Why? Since the company has them already listed in numbers, it can do the estimation in simple random sample to avoid any possibilities that the way the company numbered the mortgage is not random which might leaves to biased systematic sampling. 7.2 A corporation lists employees by income brackets (alphabetically within brackets) from highest to lowest. If the objective is to estimate average income per employee, should systematic, stratified, or simple random sample be use. The stratified random sampling would be the best for this situation because we can stratify the population by its brackets to sample based on the information we already have. Systematic is always the easiest one, but its conclusion can be really biased if we accidently systematic sample the population based on its pattern. Simple random sample, as the name has suggested: simple However, simple random sample treats every unit equally, but there is most be less people is the higher brackets than the lower ones. So simple random sample has a high chance
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STAT 4260 HW9 - Austin Wen STAT4260 HW9 7.1 Suppose that a...

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