Model-assisted optimal allocation for planned domains using composite estimation

This paper develops allocation methods for stratified sample surveys where composite small area estimators are a priority, and areas are used as strata. Longford (2006) proposed an objective criterion for this situation, based on a weighted combination of the mean squared errors of small area means and a grand mean. Here, we redefine this approach within a model-assisted framework, allowing regressor variables and a more natural interpretation of results using an intra-class correlation parameter. We also consider several uses of power allocation, and allow the placing of other constraints such as maximum relative root mean squared errors for stratum estimators. We find that a simple power allocation can perform very nearly as well as the optimal design even when the objective is to minimize Longford’s (2006) criterion.