Identify each of the following studies as using either descriptive statistics or inferential statistics. (10 marks)

A.Calculating the relative frequency of Toyota cars passing by your house between 7pm and 8pm this evening.

B.Estimating the proportion of households in Fiji that have at least two dependents, from a random sample of 100 Fijian households.

C.Measuring the fuel efficiency of five brand new Holden Commodore SV6 cars in order to find out whether the average fuel consumption of this make and model is better than 10L/100km.

D.Calculating the proportion of female students in an economic statistics class.

E.Estimating the average age of students at USP from a sample of 200 randomly

selected students.

Determine the type of data (level of Measurement) for each of the following

a)Data on patient mobile phone numbers.

b)Data on gender of university students.

Part 2: The tourist industry is very much interested in understanding how tourists spend money. In order to measure the price changes in three important components of tourist spending, a statistician calculated the average cost of a hotel room per night, cost of one meal and cost of rental car per day. The results of this are shown below.

Tourist spending component

1985 2015

Cost($) Quantity Cost($) Quantity

Hotel (one night) 55 6 220 4

Meal 10 8 26 6

Car rental (one day) 25 2 70 3

a)Calculate a simple price index of a rental car per day, taking 1985 as base year. Interpret your answer. (3 marks)

b)Calculate the Laspeyres Price Index (LPI) for tourist spending for year 2015. Let 1985 =100. Interpret your answer. (3 marks)

Discuss when Paasche Price Index (PPI) method provides accurate changes in price. (1 mark)