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

question 14

Multiple Choice

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 should produce the smallest margin of error?

• A) A simple random sample that uses a computer program to generate random numbers
• B) A stratified random sample that uses income categories as strata
• C) A multistage cluster sample that uses counties as clusters
• D) None of the above

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Definitions:

Delivery Gap

The difference between a company's service quality performance compared to customer service expectations.

Zone Of Tolerance

The area between customers’ expectations regarding their desired service and the minimum level of acceptable service—that is, the difference between what the customer really wants and what he or she will accept before going elsewhere.

Standards Gap

The difference between the quality standards set by a company for its products or services and the actual performance perceived by customers.

Communications Gap

A situation where there is a difference or conflict between the message sent and the message received, often leading to misunderstanding.