instructions:

Sampling. MBIA Inc. can use statistical sampling to pursue repurchase demands against Bank of America Corporation, a judge said in a lawsuit claiming MBIA was fraudulently induced to insure $21 billion in mortgage-backed securities. MBIA asked New York State Supreme Court Judge Eileen Bransten to allow company lawyers to develop evidence using samples from 368,000 mortgages in 15 securitized pools to establish its fraud claims rather than go through each loan. Proceeding loan by loan might lead to a delay of several years before trial, Philippe Z. Selendy, an attorney for Armonk, New York-based MBIA, said in an October 13 letter to the judge. On December 22, 2010, Bransten ruled that the court does not find any prejudice in deciding the motion before it and allowing the use of statistically significant samples of the securitizations at issue. She said the defendants could also choose to use their own sampling chosen in a statistically valid manner to rebut MBIA's arguments. Source: Bank of America Loses Evidence Ruling in MBIA Suit, Bloomberg Businessweek, December 29, 2010; Bank of America Loses Bid to Stop MBIA Using Statistics in Fraud Lawsuit, www.bloomberg.com/news/2010-12-22/bofa-loses-evidence-ruling-in-mbia-fraud-suit-over-21-billion-in-coverage.html (accessed May 1, 2013). President Barack Obama's nominee to head the Census Bureau ruled out using statistical sampling to adjust the results of the 2010 census, apparently easing Republican concerns and making his confirmation likely. Robert Groves, director of the University of Michigan's Survey Research Center and a former Census Bureau official, is an expert on statistical sampling. Proponents of sampling say it helps produce a more accurate count of the population, especially when it comes to traditionally undercounted groups, such as minorities living in urban areas. But many Republican lawmakers insist that sampling violates the Constitution. During his confirmation hearing, Groves said he wouldn't use sampling to adjust the 2010 count. Asked whether he would consider using it in a future census, he said: There are no plans to do that for 2020. Source: Census Pick Rules Out Using Sampling in 2010, The Wall Street Journal, May 16, 2009, p. A2. Do you believe sampling is or is not appropriate in the two situations described above? Why?