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Does variance tend to be higher in cluster sampling compared to SRS? Why?

Does variance tend to be higher in cluster sampling compared to SRS? Why?

Math   Statistics-And-Probability   
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Answer #1

The cluster sampling design usually leads to a larger sampling variance

than that from SRS. This is because the elements within naturally formed

clusters are often similar, which then yields a positive covariance between

elements within the cluster. The homogeneity within clusters is measured

by the intraclass correlation coefficient (ICC)—the correlation between all

possible pairs of elements within clusters. If clusters were randomly formed

(i.e., if each cluster were a random sample of elements), the ICC would be

zero. In many natural clusters, the ICC is positive and, hence, the sampling

variance will be larger than that for the SRS design

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