Notes on Use of the Composite Estimator: an Improvement of the Ratio Estimator

Kung-Jong Lui

doi:10.2478/jos-2020-0007

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Notes on Use of the Composite Estimator: an Improvement of the Ratio Estimator

Journal of Official Statistics

Volume 36 (2020): Issue 1 (March 2020)

By: Kung-Jong Lui

Open Access

|Mar 2020

Abstract

This article discusses use of the composite estimator with the optimal weight to reduce the variance (or the mean-squared-error, MSE) of the ratio estimator. To study the practical usefulness of the proposed composite estimator, a Monte Carlo simulation is performed comparing the bias and MSE of composite estimators (with estimated optimal weight and with known optimal weight) with those of the simple expansion and the ratio estimators. Two examples, one regarding the estimation of dead fir trees via an aerial photo and the other regarding the estimation of the average sugarcane acres per county, are included to illustrate the use of the composite estimator developed here.

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