Practice Exam 20. (10 points) The director of sales for a large home renovation

Question

Practice Exam 20. (10 points) The director of sales for a large home renovation company would like to know what proportion of homeowners in Wake County have done a major home repair in the last year. To investigate this the director would like to survey a sample of homeowners from Wake County and is considering two methods. Method 1: Create an advertisement that will appear on Google searches related to home repairs and renovations. The ad will ask viewers to complete a survey about recent repairs and renovations. To insure they complete the survey each individual who completes the survey will receive a $50 Amazon.com gift card Method 2: Compile a list of all homes using the county's home construction data base. Then using a random number generator to pick 100 homes. Go to each of these homes and interview the homeowners about recent repairs and renovations Which method should the director use to get the best estimate of the proportion of Wake County homeowners who have done a major home repair? Explain.

Explanation / Answer

Director should use Method 2 because Method 2 uses voluntrary sampling and in voluntary response sampling, people decide whether to join the sample in response to an open invitation. Voluntary response samples attract people who feel strongly about the issue in question, that leads bias. Also Method 1 is offering good incentive, that can attract people who do not belong to population of interest with fake answers just to get incentive, that also leads bias.

Method 2 is fair and includes population of interest. There is less (approximately no) chance of bias.

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