Question: Using the variances estimated in Exercise, what sample size would be needed with simple random sampling to achieve the same precision in estimating the average price a household is willing to pay as a stratified sample of size 200 using the strata you have designed and optimal allocation? Proportional allocation?
Exercise: Use the program ADDGEN to generate 200 random addresses in Lockhart City and then the program SURVEY to obtain the responses of these houses. Estimate the following:
a The average price a household is willing to pay for cable TV
b The average number of TVs in a household in Lockhart City
c The proportion of houses willing to pay at least $10 for cable service. Be sure to give standard errors for all estimates. (Use the fpc, even though it may not be strictly necessary.) Make sure you save the sample you obtained for this exercise-you will use it again in the next chapter.