Intra-cluster correlation refers to the degree of similarity or correlation between observations within the same cluster in a cluster sampling design. This concept is crucial because it affects the efficiency of estimates obtained from clusters and determines the extent to which sampling within clusters influences the overall results. High intra-cluster correlation means that members within a cluster are more alike, which can lead to less precise estimates when samples are drawn from such clusters, impacting both one-stage and two-stage sampling approaches as well as the estimation process involved in analyzing cluster data.
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