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 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