Question 1 Is climate change a major issue in Pacific Island Countries (PICs)? To answer this question, a researcher surveys 1200 randomly selected individuals in PICs. Suppose 800 of the sampled people responded that climate change is a major issue for them. . a) Construct a 95% confidence interval to estimate the population proportion of individuals in PICs who feel that climate change is a major issue for them. (5 marks)b) Assume there are 800,000 populations in PICs. What is the minimum number of people in PICs that are concerned about climate change? (2 marks) Question 2 is attached below:

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. 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 Laspcyres Price Index (LPI) for tourist spending for year 2015. Let 1985 =100. Interpret your answer. (3 marks) 0) Discuss when EpswcwwlmPrice Index (PPI) method provides accurate changes in price. (I mark)