A NOTE ON OPTIMUM STRATIFICATION OF

POPULATIONS FOR ESTIMATING THE POPULATION

MEANS
V. K. SETHI
Institute of Social flcielzces, Agra University, Agra
Summary
The note gives the results of'a study carried out to find the
optimum points of stratification (OPS) for estimating the population
means of some standard distributions. The distributions considered
here are the normal and the set of chi-square distributions. The
OPS for the various gamma distributions can be easily derived from
the known OPS of the corresponding chi-square distributions. The
OPS depend on the type of allocation envisaged. I n this note atten-
tion has been confined to the proportional, equal, and optimum
allocations.
Tables of OPS are given for the distributions and allocations
mentioned above. Some other interesting results follow :
(i) Equalization of stratum totals as suggested by Ransen,
Hurwitz and Madow (1953) does not lead to OPS for any of
the populations considered.
(ii) Equalization of Jdf(8)) *& gives an excellent approximabioii
to the OPS for both equal and optimum allocations.
(iii) The OPS for equal and optimum allocations almost coincide.
To put in other words, if strata are defined by OPS optimum
allocation differs only slightly from equal allocation.
New rules are suggested for the family of distributions considered
in this paper for all the three types of allocations.

1. Practical Considerations in Stratifying Populations

The main purpose of stratifying a population is to reduce the
variance of some estimator of its mean. It is known that even
deliberately badly selected stratification will achieve the purpose with
proper allocation (say proportional). With a similar allocation, the
reduction in variance becomes more substantial if the strata are more
homogeneous. Sometimes the homogeneity is achieved if strata are
formed by combining together geographically contiguous areas. A
more intimate knowledge of the population makes a greater reduction
in variance possible by better stratification and allocation. For
optimum allocation a knowledge of different strata variances is
required. It is unlikely that one has this information for the character
under study. Either estimates of the variances or the actual variances
for a closely related variable are substituted for this purpose. Similarly
for optimum stratification one needs the knowledge of the distribution
of the variable under study. The non-availability of this information
1 Manuscript received August 8, 1962.
 OPTIMUM STRATIFICATION OF POPULATIONS 21

forces one t o substitute for it the distribution of a closely related

variable. Thus instead of optimum stratification and optimum
allocation one may in practice only hope to get close approximations
to them. I f the distribution is almost continuous a slight shift in
the strata boundaries or allocations from the optimum will not result
in substantial increase in variance.
If the values of each of the units were known the homogeneous
strata would be defined by a set of points. All units having values
lying between two of the points would form a stratum. Dalenius
and Gurney (1950, 1951) discussed the problem of finding OPS for
continuous distributions. They find that an explicit solution giving
the values of the stratification points is not possible. Instead they
arrive at some relations which the OPS must satisfy. To get a t the
actual optimum one has to start with a conveniently chosen set and
proceed towards the optimum set by iterative steps. The iterative
method is very cumbrous for equal and optimum allocations and
even for proportional allocation for more than two strata. In view
of the considerations of the previous paragraph it is imperative that
the use of iterative methods be replaced by the use of ready tables
for a wide range of distributions or by some simple rules of thumb.
Tables can be prepared for continuous distributions. The actual
distributions encountered in practice are all discontinuous. If the
populations are sufficiently large they can very often be approximated
by 6ome standard continuous distributions. Thus the tables of OPS
for these standard distributions can profitably be utilized for the
stratification of actual populations. Such methods are not new in
statistics. For interval estimation and testing of hypotheses about
population parameters the statisticians simplify the problems by
approximating the distributions of certain statistics by theoretical
distributions for which they have prepared extensive tables. For
example they often approximate the distribution of the sample mean
by a normal distribution knowing full well that actual distributions
are discontinuous and thus cannot be normal. Such approximations
and the presence of extensive tables are the foundations of the entire
structure of the application of statistical theory.
Approximation of actual populations by standard ones is an
essential step in the use of the tables. The problem of approximation
will, however, not be discussed in this paper. A large number of
unimodal populations can be approximated by
(i) the normal distribution,
(ii) gamma distributions, and
(iii) beta distributions.
The tables for the first two of these along with some relevant observa-
tions are given in the present note.

2. Notation and Formulae for Means and Variances

Let f(x) denote the density function of the distribution. Let
z1,s2?. . .,x & - be
~ the point,s of stratification in increasing order of
magnitude. The first stratum consists of all values less than or equal
t o xl, the last (kth) of all the values greater than In general
the hth stratum consists of all the values greater than mhP1 but less
than or equal to xh, taking by convention xo= - co and xk= co.+
32 V. K. SETHI

The proportion of units in the Ath stratum is given by

Pzh

The mean of the values in the hth stratum is

For the normal distribut,ion with zero mean and unit variance,

(31 [lh=
f($h-l) -f ($h)
wh
For the &distribution,
[lh =m{Fn+2(gh) -Pn+2(2h-1)} IWh =m{ w(n + e ) h / w ( n ) h ) ,
(4)
where I?,(%) is the distribution of the x: distribution.
The variance of the values in the hth stratum ia

3. Iterative Method for Obtaining OPS for Proportional

Allocation
Dalenius (1950) proved that the OPS for proportional allocation
must satisfy the relations
(8) zh=fr{[lh+p*+l}, h=l, 2 , . . ., k-1.
As p h and ph+l are themselves functions of the stratscation points,
the OPS will have to be found by the following iterative method.
(i) Start with some arbitrary set of points mi <&<. . .<&I.
(ii) Calculate the proportions and the means for the strata defined
by this set.
(iii) Calculate
(9) APh=zi-i{ph+ph+l}.

(iv) Calculate

(v) Solve the simultaneous linear equations in ai7s.

 0PTIMC.M STRATIFICATIOX O F POPULATIOKS 23

(vi) Replace the initial set of points by the set {z;&-S,J.

(vii) Repeat steps (ii) to (vi) till two consecutive sets of points
are identical or differ by negligible quantities.
For calculating Zp,zi it may be noted that
(3 3 )
and

(14) f n ( g )= W ' n - z ( m ) - p n ( m ) l *
Considerable simplification is obtained by replacing the steps
(iii) to (vii) by the following.
(iiia) Replace the initial set by
(15) zih"'&{ph+ph+ll'
(iva) Repeat the steps (ii) and (iiia) till two consecutive sets are
either identical or differ by negligible quantities. This alternative
method can be used directly in actual problems also without any
approximation by a continuous distribution.
The alternative method was used t o find the OPS for t'he N ( 0 , l )
and x2-distributions when allocation is proportional. The results are
given in the following tables.
TABLE1
Optimuni Points of StraliJication (OPS)foi, Proportional Allomtiom
k=2 .-
I

1
2
2.37
3.36
4994
4996
0.57
1.23
I
~
4.03
5.36
' 2.30
3.30
3 4.35 5003 1.94 6.61 ~ 4.28
4 5.35 4998 2.68 7.89 5.29
5 6.35 4996 3.45 9.13 ~ 6.29
6 7.34 5005 4.23 10.33 j 7.28
7 8-34 5003 6.02 11-53 8.28
8 9.34 5002 5.83 12.72 j 9.28
9 10.34 5002 6.65 13.89 10.37
10 11.34 5002 7.48 15.07 1 11.28
11
12
12.34
13.34
5001
5000
8.32
9.16
16.23
17.39
I
1
12.28
13.28
13 14.34 5000 10.01 18.54 14.28
14 15.34 5000 10.86 19.69 15.58
15 16.34 5000 11.72 20.83 1 16.38

ivote : The stratification points were chosen to be the median of the

xit2-distributions ; these were rounded off to the nearest two places of decimals
and the quantities (l-Fw), (l-F,+$) were calculated by linear interpolation from
the Biometrika Tables. As zi and 2; are not exactly equal, the optimum point
probably lies slightly below z; (as observed for some of these distributions). The
difference is, however, so small that one could stop at this step. The optimum point
for a normal distribution is however its median.
24 V. K. SETEU

TABLE2
OPS for Proportional Allocution
k=3
.-
1

h n n

-_ - ___ ___--
1
2
3
--
1
1

2 2.00 7358 0.84 2.02

-
9

10 8.70
7.80
13.40
7311
2682

7283 1
8.43 7-81
10.19 13.39
116.58
6.19 8-70
1
1
2
3
-_
5.20
__-
2674 3.19
7.20
5.20
-
14.50 2699 111.20 14-52
117.83 1
1 3 2.80 7308 1.40 2.80 11 9-60
2 6-40 2693 4.20 6-41 15-60
3 8.62 19.05
-- -_ -
I 13.15
- - I

1 4 3.60 7306 I 2.01 3.61 12 10.40 7322 7.67 10.41

2 7.60 7.61 16-70 2681 16.71
3 /20.27
-_
1 5 4.40 7327 2.65 1 4.42 13 11.30 7309 ~ 8.45 11.32
2
3
-_
8.80 2673 6.19
11.39 1 8.79
_-
17.90 2681 14.18 17.89
121.58

1 6 5.30 7350 14 12.20

2 9.90 2722 19.00
3 12-66
-- -~___
1
2
7 6.10
11.10 I
I 7298
2692
4.01 1 6 . 1 0
8.19 11.10
1
15 13.10
20.10
3
-_
1 8 7254
2722
1=/69R
114.00

1 9.21 12.23
115.25 ,
I I ~

Note : It will be noticed that the optimum points of %;-distributions divide the
dist,ribution of ~ z + ~
into almost constant proportions. The optimum points for
the normal distribution divide it at the 27.1 and 72.9 percent points. The pro-
portions into which the XE+2-distrihutions are divided by the optimum points of the
Xt-distributions are very nearly the same as these proportions for t,he n o r n d
distribution.
 OPTIMUM STRATIFICATIOS O F POPULATIONS 35

TABLE3
OPS for Proportional Allocation
k= 4

n xi
--
0.90 8254 0.27 0.88 9 6.60 8305 4.74 6.56
2,37 4994 1.49 2.42 10.34 5002 8-38 10.39
5.10 1648 3.35 5.11 15.40 1651 12.40 15.41
6.87 18.42
~ _____ ______
1.50 8266 0.66 1.48 10 7.40 8301 5.43 7.36
3.36 4996 2.29 3.41 11.34 5002 9.29 11.39
6.50 1649 4.53 6.52 16.60 1654 13.49 16.62
8.50 19.74
-- __-
2.10 8350 1.11 2.10 11 8.20 8303 6.12 8.16
4.35 5003 3.09 4.37 12-34 5001 10.19 12.39
7.80 1676 5.64 7.32 17.80 1655 14-58 17.81
9.99 21.04
-__
2.80 8335 1.63 2.79 12 9.00 8310 6.82 8.96
5.35 4998 3.94 5.38 13.34 5000 11.10 13.39
9.10 1681 6.82 9.14 19.00 1650 15.68 19.02
1.46 22.36
___- ___- -- ___-
3.50 8351 2.19 3.50 13 9.80 8321 7.53 9.77
6.35 4996 4-80 6.38 14-34 5000 12-01 14.39
0.40 1673 7.95 10.43 20.20 1649 16.77 20.20
2.90 23.62
4.20 8386 2.76 4.21 14 10.60 8333 8.25 10.58
7.34 5005 5.65 7.37 15.34 5000 12.91 15.39
1.70 1654 9-08 11-71 21.40 1644 17.86 21.38
-4.34 24.90
- -- ____ ~-
5.00 8343 3.41 4.98 15 11.40 8348 8.96 11.39
8.34 5003 6.56 8.37 16.34 5000 13.81 16.37
2.90 1674 0.18 12.93 22.50 1670 18.92 22.51
5.68 26.10
-___
5.80 8318 4.07 5-77
9.34 5002 7.47 9.39
4.20 1644 1.31 14.21
7.10
__

Note: It will be noticed that the points selected satisfy the conditions of
optimality quite closely and that they divide the distribution of XE+~
into fairly
constant, proportions. The optimum points of stratification of the normal distribu-
tion divide it at its 16.9,50.0 and 83.1 percent points. From the above observations
we are led to the following rule of thumb.
Rule 1. If the OPS of the normal distribution for proportional allocation
are its P,, Pa, P,, .. .,Pk-iper cent points then, for any value of m, the OPS of
the Xi-distribution for proportional allocation are closely approximated by the
P I . P a , . . .,Pk-i per cent points of the 2+2
distribution.
This rule waa found t o be good for all the Xa-distributions considered (n= 1(1)15)
when k was not greater than 6. When k was 8, the rule was found to be good for
n=l, 12 and 30. Thus it is enough to find the optimum points of strat5cation
for the normal distribution and use them for stratifying any population with shape
like some gamma distribution. The precise simplification will be discussed later.
 V. K. SETH1

TABLE4
9PS fov the Sormnl Distributionfor Proportiowl Allocation
I
Number I Value of the Distribution Function

-.-
of
Strata i' ( x 103) at Stratification Point,s on
the Positivc Side of M(0,l)

I1
~~

r' 500
3 729
4 i 300 839
5 648 893
.ioo
~

A 739 922
5 1 606 805 944
Y ' 500 693 858 962
9
10
I
1
587
300
745
666
879
811
967
916 979
11 ~ ,371 512 836 928 082
1" I 300 637 758 860 937 984

-Vote : The value of the distribution function at the

stratification points on the negative side can be found by
subtracting the corresponding values for the positive side
points from unity.
If an actual distribution is normal the above values
can be used directly irrespective of the mean and the
\,arianee. Similarly as the xE +2-distribution is the
distribution of the sums of xz
-distributions, these tables
can be used to divide the cumulative aggregates of any
distribution similar to a gamma distribution for finding
its points of stratification for proportional allocation.

4. The Iterative Method for Obtaining OPS for Equal

Allocation
The OPS for equal allocation should satisfy the following
condition :
(16) wh (%h - Ph)'] ="h+l [O; ($h -ph+l)1 '
h = l , 2 , . . k-1. .,
As K h , pi*, 0: for h=1, 2 , . . .,k are all functions of the points
of stratification, the OPS will have t o be found by the following
iterative method.
(i) Sta,rt with some arbitrary set of points si <. <sipl. ..
(ii) Calculate Wh, ph and i i for the strata defined by this set
of points, 7&=1,3, . , ., 72.
(iii) For all these values of 8, except the last, calculate
2
(17) 4Eh =wh [ D h (%k -p h ) 1' -w h + l [d+1 -k ($k - t*hs1)'1.
(iv) Calculate

h = l , 2 , . ., k-1. .
(v) Solve the simult-aneous linear equations in 8,'s.
(19) ~ E h + ~ l E i ~ l s l = O , h=l, 3,. . ., k-1.
(vi)Replace the initial set by the set of points (&+6,}.
(vii) Repeat the steps (ii) to (vi) till two consecutive sets of points
are either identical or differ by negligible quantities.
 OPTIMUM STRATIFICATIOK O F POPULATIOKS 35

For these calculations it may be noted that

(20) z , b b = 2 [ ~ ~ ~ + l ( c L h + l - ~ ~-wb(sk
) -t*h)l

(21) z E b ( /i-1) = -(& -$;t -1) 'ff($k -1)

(22) z,,(b+l) = -($i+I

-'ji)zj(xi+l).
This cumbersome process can be considerably simplified by
replacing steps (iii) to (vii) by the following a1ternati.c.e steps.
(iiia) Replace the original set of points by the solutions of the
equations
(231 4sb=0, 71 11, 2, . . ., k-1.
The solution may be represented as follows :

Here ip, and X, represent t'he sum and the sum of squares of the values
in the hth stratum. The sign before the function within the brackets
with power 3 is positive if me assume that & lies between p, and P,,+~.
Th=W,pI,and so
(25) {(IT, - T h + l ) / ( W h -Fh+l)} <ph'

(iva) Xepeat steps (ii)and (iiia) till two consecutive sets of points
ii re either identical or differ by negligible quantities.

TABLE5
OPS for the Normal Distribution f o r Equal
Allocation
I
Number I Value of the Distribution
of lFunct,ion ( x lo3) at Stratification
Strata
I Points onoftheN(0,l)
Positive Side

500
1
>
6 ! 300 733 905
7 j 396 778 934
8 500 667 818 941
9
10
11 576
,500
732
634
853
761
952
874 958

This alternative method can be used directly in actual problems

also without any approximation by a continuous population. This
was used to find the OPS for the normal and a number of X2-distribu-
tions. As in the case of proportional allocation here again a relation-
ship was found between the OPS for the normal and x2-distributioizs.
So the tables are given for normal distribution alone. The relation-
ship discovered is as follows :
Rule 2. If the OPS f o r the normal distribution for equa
allocation are the P,,P,,P,,. , .,PkPlper cent points of this distribu-
tion then the OPS for xt
are the PI, P,,. . ,,Pk-l per cent points of
the ~ : + ~ .distribution,
3 t o a very close degree of approximation. This
rule was Trerified for a number of values of n and k.
3.8 V. K. SETHI

5. The Iterative Method for Obtaining the OPS for

Optimum Allocation
The OPS for optimum allocation must satisfy the following
relations.

The iterative method is similar to the one given for equal alloca-
tion. AEhis however replaced by A,,, where

., k-1;
and lEhiby lohi, where

i=(h-l), h, ( h f l ) j h=l, 2 , . . . . k-1 ;

and so on.
Considerable simplification will be achieved if the second approxi-
mations are found by solving the equations
(29) Aoh=O; h = 1 , 2 , . ... k--1.
This w i l l give

The sign before the function within the brackets with power 4 is
positive if we assume that mi should lie between ph and P,,+~. Though
this alternative method can be applied directly to actual problems
without resorting t o any approximation by a continuous distribution,
it is considerably more difEcult than the use of alternative methods
for proportional and equal allocations.
An alternative simplification is given by Dalenius and Hodges
(1959). The rule given by them is as follows.
The new set {xi} is found by computing

(31) ..................................................
................................................... .,
and
 O P T I M I l X STRATIFICATION O F POYTTLATIONS 99

This procedure has been derived on the assumption that the

distribution is rectangular and a further assumption that the procedure
given above will hold reasonably well for other distributions. For
this pnper the first alternative method given by (30) was used. As in
the case of proportional and equal allocation a relationship is found
between the OPS for the normal and X2-distributions. So only the
tables for the AT(O,l) dist,ribution are given below. The relationship
between the two sets of OPS is as follows.
Rule 3. If the OPS for the normal distribution for optimum
allocation are the P1,P,,. . .,Pk-l percent points of the normal
distribution then the OPS for x: for optimum allocation are closely
approximated by PI,. . ., P,L-l percent points of y.:+, . ? distribution.
TABLE6
OPS for the Nornull DistributioiL for Optimiivn
Alloca6ion
_____ -. . .. ... ._ ~

Number 1 Function x lo3)Distribution

Value of the

St%a j Points on
tion
( Stratifica-
at
Positive
the
Side of ~ V ( 0 , l )
Y 500
3 709
4 500 812

- I .. . -. . ~

On comparing Tables 5 and 6, one observes that the OPS sets

for optimum and equal allocation are very close to each other.
Alternatively it means that if stratification is optimum then optimum
allocation will d 8 e r very little from equal allocation.

6. An Examination of the Rule of Equalization of Strata

Totals for Equal Allocation
Hansen, Hurwitz and Madow (1953) proved that under certain
conditions a very simple rule may give optimum points of stratification
for equal allocation. The rule is to make stratum totals equal. The
condition under which it gives optimum stratification is that within
strata coefficients of variation are equal and remain about the same
on adjusting the strata sizes. The greatest merit of the rule is its
extreme simplicity and it has been claimed that the conditions under
which it gives optimum set of stratification points are satisfied by
a large number of real populations.
Sethi (1960) showed that it is almost always possible to improve
upon the stratification achieved by this rule of thumb. The improve-
ment, however, involved changes in the scheme of equal probability
of selection. The preparation of the tables of optimum points of
stratification reveals that this rule does not give optimum points for
any one of the z2 distributions or the normal dist<rihution(except for
k=3).
30 V. IC. SETHI

_ _ ~ - ---_ ~ .- ~ ~. ___
Number
of
Parameter'
of the
1
1
Variance of Estimates of t,he Mean
Strata Dist,ribution Equalized Optimum
1
~ ~

i Strata Totals Strata

'
_ _ _ _ - ~ - . -

->
I
12 i 0.33345
4.30573
I
0.22983
4.17445

3
~~

301
12
I
,
j
10.90021

0.13768
1.80232
~
~~.
~.
10.77218
_____
0.09289
1.38017
-

30 4.08131 I 3.61492
_I_~
~

____ ~

'
,-- .-

-I
I 0.06875 j 0.03004
1 12 i 0.81506 j 0.61466
1.9866'3 j 1.62234
__ .
. -. 30 ___I___

---____--
I 0.04320 ~ 0.01600
> 12 j 0.49869 0.32576
30 1.2642!!) 0.87214
_____..~_. I.--- ~

i. -~
1 ' 0.03206 0.00962
 OPTIMUM STRATIFICATIOS OF POPULATIONS 31

of stratification discussed in this note it will not hold for any ordinary
dhtribution.
Let {&} be the points dividing the distribution of some variable
X into strata of equal sizes. Let {&} be also the OPS for equal
allocation for this particular distribution. Clearly {y;L=&+b} will
he the OPS for the distribution of P=X+b for equal allocation.
Hut {yi} will not divide the distribution of P into strata of equal
totals. Thus, if a t all, the equalization of strata can give optimum
stxatification for the distribution of only one of the entire infinite
family of variables Y + b . It will be surprising to come across a
large number of such exceptional distributions in practice.

7. An Examination of the Rule Given by Dalenius and

Hodges (1 959) for Stratification with Optimum Allocation
Dalenius and Hodges (1959) gave a simple method of approxi-
mating the optimum stratification with optimum allocation. This
method assumes the knowledge of the distribution and also the
continuity of distribution. It could be used like the proposed tables
by first approximating the actual distribution by a standard con-
tinuous distribution. As the OPS for optimum and equal allocations
are quite close this method also provides approximation for the case
of equal allocation.
The rule (DHR) is as follows:
Let f(s)be t,he density function of the distribution. Define
ru

(33)

The roots of the equations

(31) y ( u ) = h H / k , 72-1. 3. . . ., k - 1 ,
are taken as the first approximation to the OPS for optimum allocation.
For the second approximation equations (31) may be used but it has
lwen shown by Dalenius and Hodges that the improvement over the
first approximation achieved by the second is small even for a small
number of strata, though the rule was derived on the assumption
of a large number of strata.
DHR becomes extremely simple to apply in the case of the normal
and j12-distributions. For normal distributions, the solutions of (34)
divide a normal distribution with same mean but twice the variance
into strata of equal proportions. For the x:-distribution, the solutions
of (34)are given by {xi=2yil) where {yi) diride it & +z,lL-distribution
into strata of equal proportions. The following table compares the
OPS and the set of points given by DHR for some distributions.
The closeness of the two sets seems to justify the use of this rule.
For all distributions, according to DHK the set of points of
iTratification for k strata will be a subset of the set of points of strati-
32 V. R. SETHI

fication for lk strata where 1 is some positive integer. From Table 6

it appears that this condition is not satisfied for the OPS. The
Werenee in the variances for the two schemes of stratification has
been found to be so small that there is practically no loss in stopping
at DHR. For better approximation one may find out the OPS for
N(0,l) taking the initial set of points as those given by DHR. The
OPS for distributions resembling some gamma distribution can then
be found by Rule 3. The hbles given in t'his note may be used for up

TABLE8
Comparison of the OPS' for ~pLirnu?nAllourtion (ind the D H R Poink
.. ~

Numbor
of Distribution DHR Points
Strata

2 0.00 0.00
2.7 2.8
12.6 12.7
30.6 30.7

3 -0.55, 0.55 --0-61, 0.GI

1.6 , 4.0 1.6 , 4.4
10.0 , 15.5 10.0 , 16.0
26.0 35.0 26.0 , 3 6 . 0

-__

4 -0.88, 0.00, 0 . 8 8 -0.06, 0.00, 0.96

1.1 , 2 . 7 , 5.2 1.1 , 2 . 8 , 5.5
8 . 6 , 1 2 . 6 , 17.5 8 . 8 , 12.7 , 1 8 . 1
24.0 . 30.6 ,38.0 j 2 3 . 8 , 3 0 . 7 , 38.7
I
- __ - _-
5

to ten strata. It may be mentioned that for applying DHR an

approximation by a distribution with a finite number of discontinuities
may also be used. The simplest would be to approximate by the
histogram. Perhaps it would be better to use the frequency polygon
instead.
On the basis of the set of optimum points for the normal clistribu-
tion it appears that instead of equalizing totals of f(m)f it may be
bett,er to equalize totals of j ( ~ ) . ~ and
6 for optimum and equal
f(s)*"
allocations respecti-vely.
 OPTIMUM RTR~ATIFICATIOlZ O F POPULATIONS 33

References
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