Sampling Theory
MODULE V
LECTURE - 18
RATIO AND PRODUCT
METHODS OF ESTIMATION
DR. SHALABH
DEPARTMENT OF MATHEMATICS AND STATISTICS
INDIAN INSTITUTE OF TECHNOLOGY KANPUR
1
Ratio estimators with reduced Bias:
The ratio type estimators that are unbiased or have smaller bias than Rˆ , YˆR or YˆRc ( tot ) are useful in sample surveys . There
are several approaches to derive such estimators. We consider here two such approaches:
1. Unbiased ratio-type estimators:
y
Under SRS, the ratio estimator has form X to estimate the population mean Y . As an alternative to this, we consider
x
following as an estimator of population mean
1 n Y
YˆRo = ∑ i X .
n i =1 X i
Let
Yi
=Ri = , i 1, 2,.., N ,
Xi
then
1 n
YR 0 = ∑ Ri X
ˆ
n i =1
= rX
where
1 n
r = ∑ Ri .
n i =1
2
Now
(YˆR 0 ) E (YˆR 0 ) − Y
Bias=
= E (rX ) − Y
= E (r ) X − Y .
Since
1 n 1 N
E (r ) =
n
∑ ( ∑ Ri )
=i 1 =N i1
N
1
=
N
∑R
i =1
i
= R.
So
Bias (YˆR=
0) RX − Y .
3
N −n
Using the result that under SRSWOR, Cov( x , y ) = S XY , it also follows that
Nn
N −n 1 N
=
Cov(r , x ) ∑ ( Ri − R )( X i − X )
Nn N − 1 i =1
N −n 1 N
= ∑
Nn N − 1 i =1
Ri X i − NRX
N − n 1 N Yi
= ∑ X i − NRX
Nn N − 1 i =1 X i
N −n 1
= ( NY − NRX )
Nn N − 1
N −n 1 ˆ ) .
= − Bias (Y
n N − 1
R0
N −n
Thus using the result that in SRSWOR, Cov( x , y ) = S XY , we have
Nn
n( N − 1)
Bias (YˆRo ) = − Cov(r , x )
N −n
n( N − 1) N − n
= − S RX
N − n Nn
N −1
= − S RX
N
1 N
where =
S RX ∑ ( Ri − R )( X i − X ).
N − 1 i =1
4
The following result helps is obtaining an unbiased estimator of population mean:.
Since under SRSWOR set up,
E ( sxy ) = S xy
where
1 n
=
sxy ∑ ( xi − x )( yi − y ),
n − 1 i =1
1 N
=
S xy ∑ ( X i − X )(Yi − Y ).
N − 1 i =1
ˆ
So an unbiased estimator of the bias is Bias (YR 0 ) =
−( N − 1) S RX which is obtained as follows:
(Yˆ ) =
Bias −( N − 1) srx
R0
N −1 n
=
− ∑ (ri − r )( xi − x )
N ( n − 1) i =1
N −1 n
=
− (∑ ri xi − n r x )
N ( n − 1) i =1
N − 1 n yi
=
− ∑ xi − nr x
N ( n − 1) i =1 xi
N −1
=
− (ny − nr x ).
N ( n − 1)
5
So
(Yˆ ) = n( N − 1)
Bias E (YˆR 0 ) − Y =− ( y − r x ).
N ( n − 1)
R0
Thus
E YˆR 0 − Bias (YˆR 0 ) =
Y
n( N − 1)
or E YˆR 0 + ( y − r x ) =
Y.
N (n − 1)
Thus
n( N − 1) n( N − 1)
YˆR 0 + (y − r x) =
rX + (y − r x)
N ( n − 1) N ( n − 1)
is an unbiased estimator of population mean.
6
2. Jackknife method for obtaining a ratio estimate with lower bias
Jackknife method, is used to get rid of the term of order 1/n from the bias of an estimator. Suppose the E ( Rˆ ) can be
expanded after ignoring finite population correction as
a a
E ( Rˆ ) = R + 1 + 22 + ...
n n
Let n = mg and the sample is divided at random into g groups, each of size m. Then
ga ga
E ( gRˆ ) =gR + 1 + 2 2 2 + ...
gm g m
a1 a
= gR + + 2 2 + ...
m gm
Let Rˆi* = ∑ *
yi
where the ∑ *
denotes the summation over all values of the sample except the ith group. So Rˆi* is
∑ *
xi
based on a simple random sample of size m(g - 1), so we can express
a1 a
E ( Rˆi* ) =
R+ + 2 2 2 + ...
m( g − 1) m ( g − 1)
or
a a
E ( g − 1) Rˆi* = ( g − 1) R + 1 + 2 2 + ...
m m ( g − 1)
Thus
a2
E gRˆ − ( g − 1) Rˆi* =R − + ...
g ( g − 1)m 2
or
a g
E gRˆ − ( g − 1) Rˆi* =R − 22 + ...
7
n g −1
1
Hence the bias of gRˆ − ( g − 1) Rˆi* is of order 2 .
n
Now g estimates of this form can be obtained, one estimator for each group. Then the jackknife or Quenouille’s estimator is
the average of these of estimators
∑ Rˆ i
RˆQ = gRˆ − ( g − 1) i =1
.
g