Q:

A certain city divides naturally into ten district neighborhoods. How might a real estate appraiser select a sample of single-family homes that could be used as a basis for developing an equation to predict appraised value from characteristics such as age, size, number of bathrooms, distance to the nearest school, and so on? An appropriate method is to sample the most expensive homes in a randomly selected district. An appropriate method is to generate a simple random sample of all single-family homes in the city or a stratified random sample by taking a simple random sample from each of the ten district neighborhoods. An appropriate method is to randomly select which district to survey, and record data for each home in that district. An appropriate method is to sample the newest homes in all ten districts.

Accepted Solution

A:
Answer:An appropriate method is to generate a simple random sample of all single-family homes in the city or a stratified random sample by taking a simple random sample from each of the ten district neighborhoods. Step-by-step explanation:A sampling procedure that gives an assurance that each item or person in the population has the same chance of being included in the sample is known as a simple random sample.  A sample obtained by dividing the population elements into strata and then selecting a random sample directly and independently from each stratum is known as a stratified random sampling.  Simple random or stratified random sample may be used by the real estate appraiser to predict appraised value from various characteristics of size, age, number bath rooms etc. With respect to the simple random sample method, the real estate appraiser needs to obtain a random sample of single family homes and then study or predict the required characteristics. Whereas, for the stratified random sampling method, he has to consider each of the given neighborhood districts (10) as stratums and generate a simple random sample from each of the stratum. Then, from the generated sample he would be able to study or predict the required characteristics. The population given in this case study is finite and identifiable. Thus, it is enumerative. An appropriate method is to generate a simple random sample of all single-family homes in the city or a stratified random sample by taking a simple random sample from each of the ten district neighborhoods.