Saturday, October 06, 2012


NYTIMES: HOUSEHOLD SURVEY CAN BE OFF BY 50%!


HERE'S WHY THE UNEMPLOYMENT RATE WENT DOW:  IT'S BASED ON THE "HOUSEHOLD SURVEY" ; AP:
In September, the household survey showed that the number of people who said they were unemployed fell by 456,000. The number of people who said they were working increased even more — by 873,000. 
Unlike the payroll survey, the household survey captures farm workers, the self-employed and people who work for new companies. It also does a better job of capturing hiring by small businesses. 
But the household survey is more volatile from month to month. The Labor Department surveys just 60,000 households, a small fraction of the more than 100 million U.S. households.
ACCORDING TO THE NYTIMES, THE MARGIN OF ERROR  IS.... 400,000! YUP: 
 These numbers are always tremendously volatile, but the reasons are statistical, not political. 
The volatility arises because the numbers are based on a tiny survey with a margin of error of 400,000. 
CLICK ON THE TITLE TO READ THE WHOLE THING AT ASTUTE BLOGGERS. 

1 comment:

Unknown said...

Smiles Told you yesterday :

"Rabbit Foot Obama?" - The Odd September Unemployment Rate: When Good Surveys Produce False Results.

The odds against two such anomalous reports back-to-back are not 100 to 1, but 10,000 to one, or about once in 800 years.Hmmmm.......Once in 800 years just before the elections.......Talk about 'Lucky Rabbit Foot'?


http://www.mfs-theothernews.com/2012/10/rabbit-foot-obama-odd-september.html