# Proportional Allocation

Not what you're looking for?

A financial analyst is interested in estimating the average amount of a foreign loan by U.S. banks. The analyst believes that the amount of a loan may be different depending on the bank, or, more precisely, on the extent of the bank's involvement in foreign loans. The analyst obtains the following data on the percentage of profits of U.S. banks from loans to Mexico and proposes to use these data in the construction of stratum weights. The strata are the different banks: First Chicago, 33%; Manufacturers Hanover, 27%; Bankers Trust, 21%; Chemical Bank, 19%; Wells Fargo Bank, 19%; Citicorp, 16%; Mellon Bank, 16%; Chase Manhattan, 15%; Morgan Guarantee Trust, 9%.

Construct the Stratum weights for proportional allocation

##### Purchase this Solution

##### Solution Summary

A financial analyst is interested in estimating the average amount of a foreign loan by U.S. banks. The analyst believes that the amount of a loan may be different depending on the bank, or, more precisely, on the extent of the bank's involvement in foreign loans. The analyst obtains the following data on the percentage of profits of U.S. banks from loans to Mexico and proposes to use these data in the construction of stratum weights. The strata are the different banks: First Chicago, 33%; Manufacturers Hanover, 27%; Bankers Trust, 21%; Chemical Bank, 19%; Wells Fargo Bank, 19%; Citicorp, 16%; Mellon Bank, 16%; Chase Manhattan, 15%; Morgan Guarantee Trust, 9%.

Construct the Stratum weights for proportional allocation

##### Solution Preview

Proportional allocation is a special case of stratified sampling, where the sample is allocated proportional to the stratum weights.

So we need to calcuate the stratum weights,

W= Ni/(summation of ...

##### Purchase this Solution

##### Free BrainMass Quizzes

##### Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.

##### Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.

##### Know Your Statistical Concepts

Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.

##### Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.