I have a dataset with two-stage cluster sampling. In first stage 30 PSU�s
were selected randomly (without replacement) from a universe of 60 clusters
(i.e. fpc = .5). On the second stage 30 households were selected randomly
from each PSU. I planned to analyze household attributes using Stata�s �svy�
commands. I did the following:-
.svyset psu cluster
.svyset fpc frac
And then run my survey commands. The output gave me the following comment:-
�Finite population correction (FPC) assumes simple random sampling without
replacement of PSUs within each stratum with no sub-sampling within PSUs�.
However, the assumption does not seem to hold for my sampling design.
Therefore, I am not sure how the assumption affects my analysis. Am I using
the survey command correctly for my given situation?