Question

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Suppose that you are an entrepreneur interested in establishing a new Internet-based auction service. Furthermore, suppose that you have gathered basic demographic information on a large number of Internet users. You currently have information on 1000 individuals related to their gender, age, education, marital status, annual household income, and number of people in household. Assume that these individuals were carefully selected through stratified sampling.
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(A) To assess potential interest in your proposed enterprise, you would like to conduct telephone interviews with a representative subset of the 1000 Internet users. How would you proceed to stratify the given frame of 1000 individuals to choose 50 for telephone interviews? Explain your approach.
(B) Explain how you could apply cluster sampling to obtain a sample size of 50 from this frame. What are the advantages and disadvantages of employing cluster sampling in this case?

Answer

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