The owner of Galaxy Pizza, a pizza delivery business in Mercury, South Dakota (population 100,000), believes that there may be a demand for a service that provides customers with their choice of movie videos along with the pizza delivery. Galaxy Pizza currently delivers only to customers within a 10-mile radius of the store, but guarantees delivery within 30 minutes.
a. What sampling frame would the owner use to establish how many households lie within this delivery area?
It was found that 1,000 households are within the current delivery area, which is 5 percent of the total number of households in Mercury. The owner wants to conduct this study throughout the city, and has decided to collect a random sample of 2,000 households.
b. What percentage of the total population will be represented in the sample?
c. Recommend a sampling method that is most suitable for this study, and support your answer.