SIMULATION STUDY OF HIERARCHICAL BAYESIAN APPROACH FOR SMALL AREA ESTIMATION WITH MEASUREMENT ERROR

  • Leli Latifah Department of Statistics and Data Science, Faculty of Mathematics and Natural Sciences, IPB University, Indonesia
  • Kusman Sadik Department of Statistics and Data Science, Faculty of Mathematics and Natural Sciences, IPB University, Indonesia
  • Indahwati Indahwati Department of Statistics and Data Science, Faculty of Mathematics and Natural Sciences, IPB University, Indonesia
DOI: https://doi.org/10.30598/barekengvol17iss4pp2059-2070
Keywords: Measurement Error, EBLUP-FH, Ybarra-Lohr SaeME, Hierarchical Bayesian SaeME

Abstract

In small area estimation (SAE), the auxiliary variables used are commonly derived from registration data such as census and administrative data. It is assumed that the auxiliary variables are available for all areas. The limited availability of auxiliary variables can be an obstacle in SAE. The additional information from the survey can be alternative data, but it is assumed that the auxiliary variables will contain measurement errors. This study conducted a simulation of data that aims to handle when auxiliary variables are measured with errors. Two simulations were studied with some scenarios to the percentage area where the auxiliary variable is measured with error and scenarios to the generated auxiliary variables. Compare four methods: direct estimation, Fay-Herriot Empirical Best Linear Unbiased Prediction (EBLUP-FH), Ybarra-Lohr SAE with measurement error (SaeME), and Hierarchical Bayesian SaeME. The results show that, in both the simulation study, the Hierarchical Bayesian SaeME method gives a smaller the EMSE value than the other two methods when auxiliary information is measured with error.

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Published
2023-12-19
How to Cite
[1]
L. Latifah, K. Sadik, and I. Indahwati, “SIMULATION STUDY OF HIERARCHICAL BAYESIAN APPROACH FOR SMALL AREA ESTIMATION WITH MEASUREMENT ERROR”, BAREKENG: J. Math. & App., vol. 17, no. 4, pp. 2059-2070, Dec. 2023.
Issue
Vol 17 No 4 (2023): BAREKENG: Journal of Mathematics and Its Applications
Section
Articles

Copyright (c) 2023 Leli Latifah, Kusman Sadik, Indahwati Indahwati

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