Math Problem Statement

A company wants to estimate the average monthly salary of its 1,500 employees. The employees are divided into three departments and sample of size 150 are drawn using stratified random sampling the details are provided in following table Department Total number of employees Sample size Sample mean A 600 60 4000 B 550 55 3500 C 350 35 3000 Find sample mean and ̄yst

Solution

We can use the stratified random sampling formula to calculate the overall sample mean and the population estimate for the mean salary ( yˉst\bar{y}_{st} ). Here’s the process step by step:

1. Calculate the sample mean:

The sample mean (yˉ\bar{y}) is the weighted average of the means of each stratum (department), weighted by their sample sizes. The formula is:

yˉ=1ni=1Lniyˉi\bar{y} = \frac{1}{n} \sum_{i=1}^{L} n_i \bar{y}_i

Where:

  • nn = Total sample size = 150
  • nin_i = Sample size of department ii
  • yˉi\bar{y}_i = Sample mean of department ii
  • LL = Number of departments = 3

So, we plug in the values:

yˉ=1150(60×4000+55×3500+35×3000)\bar{y} = \frac{1}{150} \left( 60 \times 4000 + 55 \times 3500 + 35 \times 3000 \right)

2. Calculate yˉst\bar{y}_{st}:

The population estimate for the mean salary (yˉst\bar{y}_{st}) is the weighted average of the sample means, weighted by the total number of employees in each stratum. The formula is:

yˉst=1Ni=1LNiyˉi\bar{y}_{st} = \frac{1}{N} \sum_{i=1}^{L} N_i \bar{y}_i

Where:

  • NN = Total population = 1500
  • NiN_i = Number of employees in department ii

Thus:

yˉst=11500(600×4000+550×3500+350×3000)\bar{y}_{st} = \frac{1}{1500} \left( 600 \times 4000 + 550 \times 3500 + 350 \times 3000 \right)

Now let's calculate both yˉ\bar{y} and yˉst\bar{y}_{st}.The calculations yield the following results:

  • The sample mean (yˉ\bar{y}) is approximately 3583.33.
  • The population estimate for the mean salary (yˉst\bar{y}_{st}) is also approximately 3583.33.

These values are the same because the sample sizes were proportionally allocated to each department.

Would you like further details or explanations on this?

Here are five related questions to consider:

  1. How would the calculation change if the sample sizes were not proportional to the department sizes?
  2. What are the advantages of using stratified random sampling in this scenario?
  3. How would you calculate the variance of the sample mean?
  4. How would the results change if department B had a significantly higher sample mean?
  5. Can you generalize this process to other sampling techniques, such as cluster sampling?

Tip: Stratified sampling ensures that each subgroup (department) is adequately represented, improving the accuracy of the overall estimate.

Ask a new question for Free

By Image

Drop file here or Click Here to upload

Math Problem Analysis

Mathematical Concepts

Stratified Random Sampling
Weighted Average

Formulas

\(\bar{y} = \frac{1}{n} \sum_{i=1}^{L} n_i \bar{y}_i\)
\(\bar{y}_{st} = \frac{1}{N} \sum_{i=1}^{L} N_i \bar{y}_i\)

Theorems

The Law of Large Numbers (implicit in stratified sampling)
The Central Limit Theorem

Suitable Grade Level

Undergraduate (Statistics/Probability)