Empirical coverage of model-based variance estimators for remote sensing assisted estimation of stand-level timber volume

Due to the availability of good and reasonably priced auxiliary data, the use of model-based regression-synthetic estimators for small area estimation is popular in operational settings. Examples are forest management inventories, where a linking model is used in combination with airborne laser scanning data to estimate stand-level forest parameters where no or too few observations are collected within the stand. This paper focuses on different approaches to estimating the variances of those estimates. We compared a variance estimator which is based on the estimation of superpopulation parameters with variance estimators which are based on predictions of finite population values. One of the latter variance estimators considered the spatial autocorrelation of the residuals whereas the other one did not. The estimators were applied using timber volume on stand level as the variable of interest and photogrammetric image matching data as auxiliary information. Norwegian National Forest Inventory (NFI) data were used for model calibration and independent data clustered within stands were used for validation. The empirical coverage proportion (ECP) of confidence intervals (CIs) of the variance estimators which are based on predictions of finite population values was considerably higher than the ECP of the CI of the variance estimator which is based on the estimation of superpopulation parameters. The ECP further increased when considering the spatial autocorrelation of the residuals. The study also explores the link between confidence intervals that are based on variance estimates as well as the well-known confidence and prediction intervals of regression models.