Sally Bird of Big Rapids Realty Has Received Data on 60

question 79

Essay

Sally Bird of Big Rapids Realty has received data on 60 houses that were recently sold in Mecosta County in Michigan. The data are recorded in the table shown below. Included in this data set are observations for each of the following variables:
· The appraised value of each house (in thousands of dollars)
· The selling price of each house (in thousands of dollars)
· The size of each house (in hundreds of square feet)
· The number of bedrooms in each house
-(A) Suppose that Sally wishes to examine a representative subset of these 60 houses that has been stratified by the number of bedrooms. Use Excel to assist her by finding such a stratified sample of size 10 with proportional sample sizes.
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(B) Explain how Sally could apply cluster sampling in selecting a sample of size 15 from this frame.
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(C) What are the advantages and disadvantages of employing cluster sampling in this case?

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Definitions:

Estimate

An approximation or educated guess of a certain quantity based on available data.

Population

The entire group or set of items or individuals from which samples may be drawn for statistical analysis.

Statistical Inference

The process of making predictions or decisions about a population based on sample data.

Reliability

The degree to which an assessment tool produces stable and consistent results.