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

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 will minimize sampling error?

A) a simple random sample, using a computer program to generate random numbers
B) a proportionate stratified random sample, using income categories as strata
C) a multistage cluster sample, using counties as clusters
D) a quota sample, with quotas set on the basis of income