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- This paper is a revised version of a Ph.D. qualifying paper for the Department of Statistics at Harvard University. I am extremely grateful to Paul Holland who guided this research and made valuable comments. I would also like to thank Samuel Leinhardt, Frederick Mosteller and David Oakes for helpful suggestions. Support was partially provided by National Science Foundation Grants SOC73–05489 to Carnegie‐Mellon University and DCR70–03456‐A04 to the National Bureau of Economic Research, Inc. Current address: School of Urban and Public Affairs, Carnegie‐Mellon University, Pittsburgh, PA 15213.