Question Details

An editor of a local newspaper is concerned with the number of errors 



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An editor of a local newspaper is concerned with the number of errors that are found in the daily paper. In order to understand the extent of this problem, the editor would like to estimate the average number of errors in the daily paper. The frame in this case is the number of errors found in the daily paper for the past six months (180 issues).
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1.	(A) What sample size would be required for the production personnel to be approximately 95% sure that their estimate of the average number of errors per issue is within 4 errors of the true mean? Assume that the editor- best estimate of the population standard deviation ( ) is 10 errors per issue.

(B) How does your answer to (A) change if the editor wants the estimate to be within 3 errors of the actual population mean? Explain the difference in your answers to (A) and (B).




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Suppose that you are an entrepreneur interested in establishing a new Internet-based auction service. Furthermore, suppose that you have gathered basic demographic information on a large number of Internet users. You currently have information on 1000 individuals related to their gender, age, education, marital status, annual household income, and number of people in household. Assume that these individuals were carefully selected through stratified sampling.
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	2.	(A) To assess potential interest in your proposed enterprise, you would like to conduct telephone interviews with a representative subset of the 1000 Internet users. How would you proceed to stratify the given frame of 1000 individuals to choose 50 for telephone interviews? Explain your approach.

(B) Explain how you could apply cluster sampling to obtain a sample size of 50 from this frame. What are the advantages and disadvantages of employing cluster sampling in this case?





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