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RATIO ESTIMATION

Statistics Directorate    
Definition:
Ratio estimation involves the use of known population totals for auxiliary variables to improve the weighting from sample values to population estimates. It operates by comparing the survey sample estimate for an auxiliary variable with the known population total for the same variable on the frame. The ratio of the sample estimate of the auxiliary variable to its population total on the frame is used to adjust the sample estimate for the variable of interest.

Context:
The ratio weights are given by X/x (where X is the known population total for the auxiliary variable, and x is the corresponding estimate of the total based on all responding units in the sample). These weights assume that the population total for the variable of interest will be estimated by the sample equally as well (or poorly) as the population total for the auxiliary variable is estimated by the sample.

Ratio estimation can be more accurate than number-raised estimation if the auxiliary variable is highly correlated with the variable of interest. However it is slightly biased, with the bias increasing for smaller sample sizes and where there is lower correlation between the auxiliary variable and the variable of interest.

Source Publication:
Australian Bureau of Statistics, Statistical Concepts Library, "Labour Statistics: Concepts, Sources and Methods", Chapter 16 - Overview of Survey Methods, Canberra, 2001.

Cross References:
Estimation
Ratio estimator

Hyperlink:
http://www.abs.gov.au/AUSSTATS/abs%40.nsf/7884593a92027766ca2568b5007b8617/93a0165bdf598509ca256aa000036c90!OpenDocument

Statistical Theme: Methodological information (metadata)

Glossary Output Segments:
SDMX

Created on Monday, February 2, 2004

Last updated on Tuesday, December 20, 2005