Optimal Cutpoint Determination: The Case of One Point Design

The paper briefly describes results on determining optimal cutpoints in a survey question. We focus on the case when we offer all respondents a set of cutpoints: a one point design. Applications in the social sciences will be cited, including contingent valuation studies, which aim to assess a population’s willingness to pay for some service or amenity, and in market research studies. The problem will be formulated as a generalized linear model. The formula for the Fisher information matrix is constructed. Search methods are used to find optimal solutions. Results are reported and illustrated pictorially.