To assess the extent of the housing downturn, in 2009 the Federal Department of

Question

To assess the extent of the housing downturn, in 2009 the Federal Department of Housing and Urban Development (HUD) obtained information on 5000 randomly-selected single-family houses nationwide. To obtain the sample, they first selected a simple random sample of 50 congressional districts (out of 436 in all). Then, within each district they took a simple random sample of 10 census tracts. Finally, within each census tract they took a simple random sample of 10 homes. The sampling methods used are examples of: A. Multistage sampling B. Convenience sampling C. Cluster sampling D. Systematic sampling E. Stratified sampling F. None of the above

Explanation / Answer

Solution:

Multistage sampling

The multistage sampling is a complex form of cluster sampling. The cluster sampling is yet another random sampling technique wherein the population is divided into subgroups called as clusters; then few clusters are chosen randomly for the survey

Definition: The Multistage Sampling is the probability sampling technique wherein the sampling is carried out in several stages such that the sample size gets reduced at each stage.

The multistage sampling is a complex form of cluster sampling. The cluster sampling is yet another random sampling technique wherein the population is divided into subgroups called as clusters; then few clusters are chosen randomly for the survey.

While in the multistage sampling technique, the first level is similar to that of the cluster sampling, where the clusters are formed out of the population, but further, these clusters are sub-divided into smaller targeting groups, i.e. sub-clusters and then the subject from each sub-clusters are chosen randomly. Further, the stages can be added depending on the nature of research and the size of the population under study.

For example, If the government wants to take a sample of 10,000 households residing in Gujarat state. At the first stage, the state can be divided into the number districts, and then few districts can be selected randomly. At the second-stage, the chosen districts can be further sub-divided into the number of villages and then the sample of few villages can be taken at random. Now at the third-stage, the desired number of households can be selected from the villages chosen at the second stage. Thus, at each stage the size of the sample has become smaller and the research study has become more precise.

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