Based on Glover and Klingman (1977). The government has many computer files that must be merged…

Based on Glover and Klingman (1977). The government has many
computer files that must be merged frequently. For example, consider the Survey
of 5.7 Conclusion 277 Current Income (SCI) and the Consumer Price Service (CPS)
files, which keep track of family income and family size. The breakdown of
records in each file is given in the file P05_69.xlsx. SCI and CPS files
contain other pieces of data, but the only variables common to the two files
are income and family size. Suppose that the SCI and CPS files must be merged
to create a file that will be used for an important analysis of
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Based on Glover and Klingman (1977). The government has many
computer files that must be merged frequently. For example, consider the Survey
of 5.7 Conclusion 277 Current Income (SCI) and the Consumer Price Service (CPS)
files, which keep track of family income and family size. The breakdown of
records in each file is given in the file P05_69.xlsx. SCI and CPS files
contain other pieces of data, but the only variables common to the two files
are income and family size. Suppose that the SCI and CPS files must be merged
to create a file that will be used for an important analysis of government policy.
How should the files be merged? We would like to lose as little information as
possible in merging the records. For example, merging an SCI record for a
family with income $25,000 and family size 2 with a CPS record for a family
with income $26,000 and family size 2 results in a smaller loss of information
than if an SCI record for a family with income $25,000 and family size 2 is
merged with a CPS record for a family with income $29,000 and family size 3.
Let the “cost” of merging an SCI record with a  ISCI and ICPS are the
incomes from the SCI and CPS records, and FSSCI and FSCPS
are the family sizes. Determine the least expensive way to merge the SCI and
CPS records.

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