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Question: Using your sample from Exercise, estimate the average price a rural household is willing to pay for cable TV, using both an unbiased estimate and a ratio estimate. Be sure to give standard errors and to plot the data appropriately.

Exercise: Design a two-stage cluster sampling scheme for the rural areas (districts 1-43) of Stephens County. Your design should

(a) choose between 25 and 50% of the districts (clusters) with equal probability,

(b) subsample within each chosen district with sample size proportional to district size (number of houses), and

(c) cost about the same amount as an SRS of size 100.

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