ON PICTURE

As part of a marketing program, a city block containing four households was selected and a sample of three households was sampled as follows: Jeremiah, the research assistant, identified the households and numbered each household from 1 to 4. He then was to list all combinations of the four households two at a time. These are: 1 and 2 1 and 3 I and 4 2 and 3 2 and 4 3 and 4 Unfortunately, Jeremiah got this job because he was related to the department chairman, and he was very careless. He forgot the combination 3 and 4. He chose a random number between I and 5 (it turned out to be 4), which corre- sponded to the combination 2 and 3. Thus, households 2 and 3 were sampled. The variable of interest was out-of-pocket medical expenses incurred by the household. These were as follows for the four households: Household Expenses ($) 345 126 W N 492 962 a. Based on Jeremiah's sampling procedure, what is the mean, standard error, and MSE of the estimated mean out-of-pocket medical expenses? b. Is the estimate derived from this sampling procedure unbiased? c. Does every household have the same chance of appearing in the sample? Why or why not