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Strata Boundary Determination

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Working Paper Number: RR98-03

Introduction

This paper describes a strategy for strata boundary determination that generalizes the classical approach of Dalenius and Hodges. Given a fixed sample size and a fixed number of strata, the Dalenius-Hodges method provides a quick means of determining strata boundaries that approximately minimizes coefficients of variation (cv). Applying their method requires assuming that the finite population correction (fpc) can be ignored, that the underlying population distribution is continuous, and that the probability density of the variable of interest is constant within strata. The minimization basically depends on one variable, strata boundary break points.

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