a. Find an estimate of the average number of newspaper per household for the community along with its standard error. b. Find ICC, and hence comment on the efficiency of cluster for this problem.

Problem 4 [15 points]: The circulation manager of a newspaper wishes to estimate the average number of newspapers purchased per household in a given community. Travel costs from household to household are substantial. Therefore, the 4000 households in the community are listed in 400 geographical clusters of 10 households each, and a simple random sample of 4 clusters is selected. Interviews are conducted, with the results as shown in the accompanying table. Cluster Number of newspapers Total 1, 2, 1, 3, 3, 2, 1, 4, 1, 1 19 1, 3, 2, 2, 3, 1, 4, 1, 1, 2 20 AWN 2, 1, 1, 1, 1, 3, 2, 1, 3, 1 16 1, 1, 3, 2, 1, 5, 1, 2, 3, 1 20 Standard ANOVA computations were performed on the data with results as shown in the following table. Source SS MS Between psus 142.975 0.358 Within psus 4330.000 1.203