Report on a multiple regression method for making population estimates

A new method of making population estimates is introduced and contrasted to the standard ratio-correlation method. The new method, called the “difference-correlation method,” produced population estimates for the counties of Michigan which had a smaller mean percentage error than estimates produced by the ratio-correlation method. The differences of proportions which are used in the difference-correlation method will always have means of zero, while the ratios used in the ratio-correlation method have means which vary. Higher intercorrelations among the variables and increased temporal stability of the intercorrelations are two advantages of using differences rather than ratios.