IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/32334.html
   My bibliography  Save this paper

Understanding and teaching unequal probability of selection

Author

Listed:
  • Raghav, Manu
  • Barreto, Humberto

Abstract

This paper focuses on econometrics pedagogy. It demonstrates the importance of including probability weights in regression analysis using data from surveys that do not use simple random samples (SRS). We use concrete, numerical examples and simulation to show how to effectively teach this difficult material to a student audience. We relax the assumption of simple random sampling and show how unequal probability of selection can lead to biased, inconsistent OLS slope estimates. We then explain and apply probability weighted least squares, showing how weighting the observations by the reciprocal of the probability of inclusion in the sample improves performance. The exposition is non-mathematical and relies heavily on intuitive, visual displays to make the content accessible to students. This paper will enable professors to incorporate unequal probability of selection into their courses and allow students to use best practice techniques in analyzing data from complex surveys. The primary delivery vehicle is Microsoft Excel®. Two user-defined array functions, SAMPLE and LINESTW, are included in a prepared Excel workbook. We replicate all results in Stata® and offer a do file for easy analysis in Stata. Documented code in Excel and Stata allows users to see each step in the sampling and probability weighted least squares algorithms. All files and code are available at www.depauw.edu/learn/stata.

Suggested Citation

  • Raghav, Manu & Barreto, Humberto, 2011. "Understanding and teaching unequal probability of selection," MPRA Paper 32334, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:32334
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/32334/1/MPRA_paper_32334.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Barreto,Humberto & Howland,Frank, 2006. "Introductory Econometrics," Cambridge Books, Cambridge University Press, number 9780521843195, October.
    2. William J Carrington & John L Eltinge & Kristin McCue, 2000. "An Economist's Primer on Survey Samples," Working Papers 00-15, Center for Economic Studies, U.S. Census Bureau.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Barreto Humberto & Raghav Manu, 2013. "Understanding and teaching unequal probability of selection1)," Journal of Econometric Methods, De Gruyter, vol. 2(1), pages 101-112, July.
    2. Chandran, Ram, 2004. "A Tobit Analysis of WIC Children's Consumption of Pyramid Group Foods," 2004 Annual meeting, August 1-4, Denver, CO 19998, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Valérie Orozco & Christophe Bontemps & Élise Maigné & Virginie Piguet & Annie Hofstetter & Anne Marie Lacroix & Fabrice Levert & Jean-Marc Rousselle, 2017. "How to make a pie? Reproducible Research for Empirical Economics & Econometrics," Post-Print hal-01939942, HAL.
    4. Teresa Torregrosa & Martín Sevilla & Borja Montaño & Victoria López-Vico, 2010. "The Integrated Management of Water Resources in Marina Baja (Alicante, Spain). A Simultaneous Equation Model," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 24(14), pages 3799-3815, November.
    5. Aleksandra Nocoń, 2020. "Sustainable Approach to the Normalization Process of the UK’s Monetary Policy," Sustainability, MDPI, vol. 12(21), pages 1-14, November.
    6. Sheremenko, Ganna & Escalante, Cesar L. & Florkowski, Wojciech J., 2012. "The Road to Financial Sustainability. Comparative Analysis of Russia and the Caucasus Region," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119525, Southern Agricultural Economics Association.
    7. Humberto Barreto & Manu Raghav, 2013. "Understanding and Teaching Within-Cluster Correlation in Complex Surveys," Working Papers 2013-02, DePauw University, School of Business and Leadership and Department of Economics and Management.
    8. Teisl, Mario F. & Rubin, Jonathan & Noblet, Caroline L., 2008. "Non-dirty dancing? Interactions between eco-labels and consumers," Journal of Economic Psychology, Elsevier, vol. 29(2), pages 140-159, April.
    9. Mohammed Musah & Yusheng Kong & Isaac Adjei Mensah & Stephen Kwadwo Antwi & Mary Donkor, 2021. "The connection between urbanization and carbon emissions: a panel evidence from West Africa," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(8), pages 11525-11552, August.
    10. Jan Vlachý, 2009. "A Valuation Model for Project Standby Capacity," Ekonomika a Management, Prague University of Economics and Business, vol. 2009(4).
    11. Jiangtao Hong & Chaher Alzaman & Ali Diabat & Akif Bulgak, 2019. "Sustainability dimensions and PM2.5 in supply chain logistics," Annals of Operations Research, Springer, vol. 275(2), pages 339-366, April.
    12. Sheremenko, Ganna & Escalante, Cesar L. & Florkowski, Wojciech J., 2012. "The Universality of Microfinance Operations Model in Eastern Europe and Central Asia: Financial Sustainability vs. Poverty Outreach," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 123286, Agricultural and Applied Economics Association.
    13. Evans Jadotte, 2006. "Income Distribution and Poverty in the Republic of Haiti," Working Papers PMMA 2006-13, PEP-PMMA.
    14. Bienert, Sven, . "METASTUDIE :NACHHALTIGKEIT CONTRA RENDITE? Die Implikationen nachhaltigen Wirtschaftens für offene Immobilienfonds am Beispiel der Deka Immobilien Investment GmbH und der WestInvest GmbH," Beiträge zur Immobilienwirtschaft, University of Regensburg, Department of Economics, number 14, August.
    15. Lal, Nathan S. & Atkins, Martin J. & Walmsley, Timothy G. & Walmsley, Michael R.W. & Neale, James R., 2019. "Insightful heat exchanger network retrofit design using Monte Carlo simulation," Energy, Elsevier, vol. 181(C), pages 1129-1141.
    16. Abonazel, Mohamed R., 2015. "How to Create a Monte Carlo Simulation Study using R: with Applications on Econometric Models," MPRA Paper 68708, University Library of Munich, Germany.
    17. Potnuru Kishen Suraj & Ankesh Gupta & Makkunda Sharma & Sourabh Bikas Paul & Subhashis Banerjee, 2017. "On monitoring development indicators using high resolution satellite images," Papers 1712.02282, arXiv.org, revised Jun 2018.
    18. Hanson, Torbjørn & Lindgren, Petter Y., 2019. "No country for old men? Increasing the retirement age in the Armed Forces," MPRA Paper 95917, University Library of Munich, Germany.
    19. Bouma, Jetske A. & Biggs, Trent W. & Bouwer, Laurens M., 2011. "The downstream externalities of harvesting rainwater in semi-arid watersheds: An Indian case study," Agricultural Water Management, Elsevier, vol. 98(7), pages 1162-1170, May.
    20. McCullough, B.D. & Heiser, David A., 2008. "On the accuracy of statistical procedures in Microsoft Excel 2007," Computational Statistics & Data Analysis, Elsevier, vol. 52(10), pages 4570-4578, June.

    More about this item

    Keywords

    unequal probability; complex survey; simulation; weighted regression;
    All these keywords.

    JEL classification:

    • A22 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Undergraduate
    • A23 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Graduate
    • C8 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:32334. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.