The transport system in London

1. Transport for London is the local government body responsible for most aspects of
   the transport system in London. Its role is to implement the transport strategy and
   to manage transport services across London.
   TfL launched the Night Tube service on the London Underground in August 2016.
   Currently, the Night Tube operates on Friday and Saturday nights across ve lines (the Central, Jubilee, Northern, Piccadilly and Victoria lines). TfL management would consider expansion of the service to more lines and/or other nights of the week, subject to consumer demand. Some 1.34 billion passenger journeys are made each year on London Underground (albeit with many individuals making multiple journeys), however there is no sampling frame with full coverage of all distinct passengers available. Despite this limitation, TfL management wants to conduct market research to assess consumer appetite for an extension to the Night Tube service, which may have fare implications. At present Night Tube fares are classified as o-peak, although a
   special night-o_-peak fare could be introduced, depending on passengers' price
   elasticities.
   TfL has invited you to devise an appropriate sampling scheme (for example quota
   sampling, simple random sampling, stratified sampling etc.) to research attitudes
   towards developing the Night Tube. Propose the most suitable sampling method,
   explaining your choice by describing the advantage(s), but also any disadvantage(s).
   Your answer should also briefly address reasons for rejecting other sampling methods.
2. (a) Explain why the sample mean and sample standard deviation are useful
   descriptive statistics of measurable variables.
   (b) When estimating means and proportions, how would you choose your sample
   size?
3. An insurance company wishes to investigate whether an association exists between
   the area of a city and the reason for an insurance claim. Three areas of a city (A,
   B and C) were considered, along with three types of insurance claim (burglary, car
   theft and re damage). A researcher collected data on n = 150 insurance claims, noting the area and type of claim. Figure 1 (on the next page) shows the results of a cross-tabulation in SPSS. Analyse the output, ensuring you address the following: 1 State the null and alternative hypotheses.
   _ Determine the significance of the test.
   _ Comment on the nature of any association.

Sample Solution