In: Economics
Compare the different types of random sampling methods. Describe an example in which stratified sampling and cluster sampling should be used. Do not cite examples already provided by peers. In replies to peers, provide analysis and recommendations.
Random sampling methods; are simple random sampling, systematic, stratified, cluster, area and multi storage.
Simple random sampling is when units are selected at random such as lottery, etc
Systematic sampling is when the first unit is selected at random and then every item at selected intervals.
Stratified is when population is divided into sub groups which are homogenous among themselves with respect to a certain characteristic. Units are randomly selected from these groups.
Cluster is when population is divided into smaller heterogeneous groups and then units are drawn at random.
Area sampling is done when groups are divided as per geographical characteristics.
Multi storage is when there is more than 1 step. In the first step units are selected at random and then further sampling is done from the 1st step group.
Stratified sampling should be used to determine the level of poverty in a region, for example a population is divided into income levels and then the standard of living is compared between the groups. Cluster sampling could also be used to divide regions and determine the living standards.
In cluster sampling, people can be grouped randomly into heterogenous groups and then one can determine the health status based on the age, sex and several other characteristics.