IC 8381 Mineral Transportation Costs In The Pacific Northwest - Methodology And Application Of A Statistical Analysis

Transportation charges for mineral commodity movements in western Oregon and western Washington were determined mainly by a stratified random sample canvass of producers. Total 1965 mineral production value for this area was $53.3 million; the cost or charge to move this production from the mine to the consumer or to the point of consumption was determined to be an additional $38.7 million. Thirty seven companies were contacted as a sample out of a total population of 349; the statistically expanded sample production value deviated 3.6 percent from that obtained by the Bureau's annual canvass. The agreement between the sample results and the canvass totals demonstrated the effectiveness of the sampling method for obtaining data with a predesigned level of accuracy. For comparison, the north-central Idaho and western Montana area was studied, A random sample experiment was designed, but because of the dominance of a few major companies, a random sample technique would have required more visits to producers than if only the larger firms were contacted. Eighty-four percent of the 1966 mineral value ($198.6 million) was accounted for by interviewing 27 firms out of a total population of 199. Total transportation costs or charges for the area were $26.7 million. The significant difference observed between the relationship of minerals production value and transport charges between the two areas investigated can be attributed to the difference in the minerals produced. The western Oregon and western Washington region is a nonmetals-producing area as opposed to the predominance of metals production in the Idaho-Montana region.