A sales manager for a company that makes commercial ovens for restaurants is int

Question

A sales manager for a company that makes commercial ovens for restaurants is interested in estimating the average number of restaurants in all metropolitan areas across the entire country. He does not have access to the data for each metropolitan location, so he had decided to select a sample that will be representative of all such areas, and will use a sample size of 30. Do you believe that simple random sampling is the best approach to obtaining a representative subset of the metropolitan areas in the given frame? Explain. If not, recommend how the sales manager might proceed to select a better sample of size 30 from this data?

Explanation / Answer

No. 30 being too small a number, that too a random sample is too bad. He should go for stratified random sample.

This way he will remove the variation between density of microwaves within different locations of the same city.

There may be additional params that the sales rep might want to stratify his sample on, for example, no. of

microwaves in single restaurant , type of restaurant ( Cuisine), location etc.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.