2012 RCB OMB Supp Stmt Part B

SUPPORTING STATEMENT
U.S. Department of Commerce
U.S. Census Bureau
2012 Economic Census Covering the Retail Trade and Accommodation and Food Services
Sectors
OMB Control Number 0607-0927
Part B - Collections of Information Employing Statistical Methods
1.

Universe and Respondent Selection
The 2012 Economic Census covering retail trade and accommodation and food services
sectors is a complete enumeration of establishments with payroll located in the 50 states
and the District of Columbia. Census data for 2007 recorded 1.7 million retail,
accommodation, and food services establishments; an establishment count of 1.7 million
is expected for 2012. Further information on the establishment universe and estimated
mail counts for the retail trade and accommodation and food services sectors of the 2012
Economic Census is given in Attachment B. The composition of this universe is as
follows:
The universe of establishments is given by the U. S. Census Bureau's Business Register.
We estimate that the size of this universe will be approximately 1.7 million
establishments in 2012, based on the count for 2007 and subsequent Business Register
tabulations. The potential respondent universe for this information collection will include
all establishments with payroll. The census will distinguish mail versus nonmail
components of this universe as described below.
a.

Mail Component
The census will use a mail canvass, supplemented by data from Federal
administrative records, to compile data for establishments in the mail component of
the potential respondent universe. We estimate that the size of this mail component
will be approximately 1.1 million establishments in 2012. Of these, approximately
976,000 establishments will receive standard report forms and information sheets,
as shown in Attachments C and D, respectively; the remaining 135,000
establishments will receive classification forms, as shown in Attachment E.
The mail component of the potential respondent universe will include the following
establishments: (i) all active operating establishments of multi-establishment firms,
(ii) large single-establishment firms, and (iii) selected small single-establishment
firms. Paragraph B.2.a.(2), below, explains the distinction between large and small
single-establishment firms and the selection procedures applied to each size class.
The 2007 Economic Census received responses from 86 percent of the
establishments in the mail component of the potential respondent universe. We
expect a similar response rate for the 2012 Economic Census.

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b.

Nonmail Component
The census will obtain basic statistics for establishments in the nonmail component
of the potential respondent universe from Federal administrative records. We
estimate that the size of this nonmail component will be approximately 574,000
establishments in 2012. It will include small single-establishment firms not selected
for the mail component. Paragraph B.2.a.(2), below, explains the distinction
between large and small single-establishment firms and the selection procedures
applied to each size class.

2.

Procedures for Collecting Information
a.

Mail Selection Procedures
Establishments in the retail trade and accommodation and food services sectors of
the economic census will be selected from the Census Bureau’s Business Register
for a mail canvass. To be eligible for selection, an establishment will be required to
satisfy the following conditions: (i) it must be classified in the retail trade or
accommodation and food services sector; (ii) it must be an active operating
establishment of a multi-establishment firm (i.e., a firm that operates at more than
one physical location), or it must be a single-establishment firm with payroll (i.e., a
firm operating at only one physical location); and (iii) it must be located in one of
the 50 states or the District of Columbia. Mail selection procedures will distinguish
the following groups of establishments:
(1) Establishments of Multi-Establishment Firms
All active operating establishments of multi-establishment firms will be
included in the mail component of the potential respondent universe. We
estimate that the 2012 Economic Census mail canvass for the retail trade and
accommodation and food services sectors will include approximately 614,000
establishments of multi-establishment firms.
(2) Single-Establishment Firms With Payroll
As an initial step in the selection process, we will conduct a study of the
potential respondent universe. This study will produce a set of industryspecific payroll cutoffs that we will use to distinguish large versus small
single-establishment firms within each industry or kind of business. This
payroll size distinction will affect selection as follows:

(a)

Large Single-Establishment Firms

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All single-establishment firms having annualized payroll (from Federal
administrative records) that equals or exceeds the cutoff for their
industry will be included in the mail component of the potential
respondent universe. We estimate that the 2012 Economic Census mail
canvass for the retail trade and accommodation and food services sectors
will include approximately 274,000 large single-establishment firms.
(b)

Small Single-Establishment Firms
A sample of single-establishment firms having annualized payroll below
the cutoff for their industry will be included in the mail component of
the potential respondent universe. Sampling strata and corresponding
probabilities of selection will be determined by a study of the potential
respondent universe conducted shortly before the mail selection
operations begin. We estimate that the 2012 Economic Census mail
canvass for the retail trade and accommodation and food services sectors
will include approximately 88,000 small single-establishment firms
selected in this sample.
All remaining single-establishment firms with payroll will be
represented in the census by data from Federal administrative records.
Generally, we will not include these small employers in the census mail
canvass. However, administrative records sometimes have fundamental
industry classification deficiencies that make them unsuitable for use in
producing detailed industry statistics by geographic area. When we find
such a deficiency, we will mail the firm a census classification form.
We estimate that the 2012 Economic Census mail canvass for the retail
trade and accommodation and food services sectors will include
approximately 135,000 small single-establishment firms that receive
these forms.

b.

Estimation Procedure
(1) Basic Statistics
Census tabulations for basic statistics are simple summations of data from a
complete enumeration. They do not entail estimates from a sample.
(2) Subject Statistics
Census tabulations for subject statistics, such as product line sales and
industry-specific special inquiries, are based partly on estimates from a
sample. These estimates are derived by summing weighted data, where each

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certainty establishment (not sampled) has a weight of 1, and each noncertainty
establishment (part of a sample) has a weight that is greater than 1. These
weights are computed as the inverse of the probability of selection. In
addition, an adjustment to the weight of the respondents is made to account for
non-response, mailout mis-classification, and other coverage errors.
c.

Required Accuracy
(1) Sampling Error
(a)

Basic Statistics
The accuracy of basic statistics from the census is not affected by
sampling error, since these measures are based on a complete
enumeration of the establishment universe. A high degree of accuracy
and statistical reliability is required, because the census' basic statistics
provide benchmarks for the national accounts; the U. S. Census Bureau's
current economic surveys; and other surveys conducted by trade groups,
businesses, and researchers.

(b)

Subject Statistics
The accuracy of subject statistics from the census is affected by
sampling error. Sampling variability occurs because subject statistics
are based, in part, on estimates from a sample of establishments and not
on measurement of the entire universe. Since all eligible establishments
recorded in the Business Register will have a chance of being selected
and since the probability of selection will be known for each
establishment, it would be possible to estimate the sampling variability
of the estimates from the sample.

(2) Nonsampling Error
The accuracy of all census data is influenced by nonsampling errors, such as
those affecting coverage, administrative records, report form design, reporting,
processing, and tabulation. Although we make no direct measurement of
nonsampling errors, we take precautionary steps in all phases of planning,
report form development, data collection, processing, and tabulation to
minimize their influence.

d.

Problems Requiring Specialized Sampling Procedures

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There are no known problems that will require specialized sampling procedures for
the 2012 Economic Census.
e.

Use of Periodic Data Collection to Reduce Burden
The census uses periodic (5-year) data collection, as required by Title 13 USC,
Section 131.

3.

Methods to Maximize Response
This information collection will maximize response through the following means:
(i)

(ii)
(iii)
(iv)
(v)
(vi)
(vii)

public awareness campaign to assist businesses and the public in understanding the
importance of the 2012 Economic Census by providing news stories through trade
and professional associations, chambers of commerce, and business and general
media;
assignment of account managers to very large businesses to provide personalized
assistance;
redesigned census report forms and information sheets with standard formats and
terminology that try to simplify reporting and minimize response burden;
extensive electronic reporting capabilities that will allow every business to report
using electronic report forms or the Internet;
mailing materials that emphasize the mandatory and confidential nature of census
reports, as provided by Title 13 USC;
toll-free assistance and a web-based help desk for any business that has questions
about completing its census report; and
systematic mail follow-up for nonresponse, supplemented by telephone follow-up
for selected firms.

Through these and other response improvement strategies, we expect to maintain or
improve the 86 percent response rate (calculated by the number of report forms returned
as a percent of report forms mailed) obtained by the 2007 Economic Census. This level
of response will yield accuracy and reliability that are adequate for intended uses of
economic census data.
4.

Tests of Procedures or Methods
This information collection will use procedures that are based on a considerable body of
experience with the economic census and surveys. Previous economic censuses also
have been the subject of evaluation studies that have examined methodology, conceptual
issues, and related statistical questions. As a result, the procedures used by the 2012
Economic Census are very well tested.

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5.

Contacts for Statistical Aspects and Data Collection
Statistical methodology is developed under the direction of William C. Davie, Jr.;
Assistant Division Chief for Research and Methodology; Service Sector Statistics
Division; U. S. Census Bureau; Washington, DC 20233 (telephone 301-763-7182). The
2012 Economic Census covering the retail trade and accommodation and food services
sectors is conducted under the direction of Jack B. Moody; Assistant Division Chief;
Census Programs; Service Sector Statistics Division; U. S. Census Bureau; Washington,
DC 20233 (telephone 301-763-2724). Data collection and analysis are managed by Fay
Dorsett; Chief, Retail Census Branch; Service Sector Statistics Division; U. S. Census
Bureau; Washington, DC 20233 (telephone 301-763-2687).

Attachments
A.

Report Form Numbers, Titles, and Associated Burden Estimates for FY 2013

B.

Composition of the Establishment Universe and Estimated Mail Counts for the 2012
Economic Census

C.

Standard Forms
Attachment C-1. Prototype Standard Form
Attachment C-2. Variable Content for Item 19--Kind of Business
Attachment C-3. Variable Content for Item 22--Detail of Sales, Shipments,
Receipts, or Revenue
Attachment C-4. Variable Content for Item 26--Special Inquiries
Attachment C-5. Content for Item 27--Leased Departments
Attachment C-6. Ownership or Control Fliers

D.

Information Sheets for Standard Forms
Attachment D-1. Information Sheet for Single-Establishment Firms
Attachment D-2. Information Sheet for Multi-Establishment Firms

E.

Classification Forms
Attachment E-1. Prototype Classification Form
Attachment E-2. Variable Content for Item 19--Kind of Business
Attachment E-3. Variable Content for Item 26--Special Inquiries

F.

Consultations with Federal Agencies, Trade Groups, Corporations, and Consulting
Firms: Persons and Organizations Contacted

G.

Consultations with Federal Agencies, Trade Groups, Corporations, and Consulting
Firms: Selected Correspondence

H.

Summary of Changes to Standard Report Forms

I.

Summary of Changes to Classification Forms