A senior manager of a car financing firm wants to study the characteristics that determine loan repayment. The research assistant has provided the following information the manager is considering using stratified sampling procedure to draw a sample of 220 (10 percent of the number of loans).

Loan officers’ surname	Loan repayment in default	Loan repayment up to date	Total
Loan officer’s surname starts with letter A to H	100	1000	1100
Loan officer’s surname starts with letter I to P	30	400	430
Loan officer’s surname starts with letter Q to Z	70	600	670
Total	200	2000	2200

Based only on the information given in the table, briefly explain how you would use stratified sampling to obtain a sample (of size n=220). Clearly indicate the strata you would use, whether proportionate or disproportionate stratified sampling is more appropriate and why.

Answer rating: 100% (QA)

To obtain a sample of size n 220 using stratified sampling based on the provided information you would follow these steps Identify Strata The first st... View the full answer