Nugget effect, artificial or natural? - Synopsis

Knowing the origin of the relevant and irrelevant components of the nugget effect is essential to optimize the process under study. This paper describes the causes of the nugget effect and, its dependency on the sample support, sampling density, and on the QA/QC procedures. Several examples of natural and ?human? nugget effect are given. A method to estimate the magnitude of the relevant and irrelevant components is suggested. Finally, the economic consequences of misunderstanding the nugget effect are analysed.