Optimum Stratification: A Mathematical Programming Approach

The probelm of determining the optimum strata boundaries, when the main study variable is used as stratification variable and a stratified sample, using Neyman allocation (for a fixed total sample size) is to be selected to estimate the population mean (or total), is formulated as a mathematical programming problem (MPP). It has been shown that with some modification this MPP may be converted into a multistage decision problem that could be solved using dynamic programming technique. Two numerial examples are also presnted to illustrate the computational details.