Random Sampling of Beef Cattle for Genetic Testing: Optimal Sample Size Determination
| dc.creator | Thompson, Nathanael M. | |
| dc.creator | Brorsen, B. Wade | |
| dc.creator | DeVuyst, Eric A. | |
| dc.creator | Lusk, Jayson L. | |
| dc.date | 2017-04-01T19:34:18Z | |
| dc.date.accessioned | 2026-07-09T10:00:09Z | |
| dc.description | Sample size is often dictated by budget and acceptable error bounds. However, there are many economic problems where sample size directly affects a benefit or loss function, and in these cases, sample size is an endogenous variable. We introduce an economic approach to sample size determination utilizing a Bayesian decision theoretic framework that balances the expected costs and benefits of sampling using a Bayesian prior distribution for the unknown parameters. To demonstrate the method for a relevant applied economics problem, we turn to randomly sampling beef cattle for genetic testing. A theoretical model is developed, and several simplifying assumptions are made to solve the problem analytically. Data from 101 pens (2,796 animals) of commercially-fed cattle are then used to evaluate this solution empirically. Results indicate that at the baseline parameter values an optimal sample size of n^*=10 out of 100 animals generate returns from sampling of nearly $10/head, or a return-on-investment of 250%. Therefore, a large portion of the additional value for higher-quality cattle can be captured by testing a relatively small percentage of the lot. These results vary depending on the actual quality (or profitability) of a particular pen of cattle, the homogeneity within the pen, the variance of the buyer’s subjective prior distribution of expected profit, and the per-head cost of genetic testing. Nonetheless, results suggest that random sampling has the potential to provide a context in which the benefits of genetic testing outweigh the costs, which has not generally been the case in previous research. | |
| dc.identifier | doi:10.22004/ag.econ.229195 | |
| dc.identifier | https://ageconsearch.umn.edu/record/229195/files/Thompson%20et%20al._SAEA2016.pdf | |
| dc.identifier | http://ageconsearch.umn.edu/record/229195 | |
| dc.identifier.uri | http://hdl.handle.net/123456789/614504 | |
| dc.language | eng | |
| dc.publisher | ||
| dc.source | http://ageconsearch.umn.edu/record/229195 | |
| dc.title | Random Sampling of Beef Cattle for Genetic Testing: Optimal Sample Size Determination | |
| dc.type | Text |