Taylor Series Expansion/Linearization

Variance Estimation for Complex Surveys

The presence of strata, clusters, and sampling weights complicate the estimation of a statistic’s variance. Thus, treating observations from complex sampling designs as though they were drawn from a simple random sample can lead to incorrect inferences. Multiple options exist for accurate variance estimation in specialized software designed to analyze survey data. These are: Taylor Series Expansion/Linearization: When a statistic is estimated using a non-linear function, one option for variance estimation is to rely on a simplification of the function that approximates the original but is more tractable.
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