Posted: September 5th, 2021

Local development initiatives often use estimates of the daily

Local development initiatives often use estimates of the daily expenditures of tourists to justify expenses incurred in supporting local events. Some years ago, the City of Kingston hosted a Tall Ships weekend, which cost the City some $850,000. To justify this expense, suppose that the City conducted a survey of 30 out-of-town visitors, asking them the grand total of what they spent during their visit to Kingston, and how many days they visited. The data are contained in the file visitor expenditures.xlsx.

a. What is a 95% confidence interval for the average daily expenditure by visitors to Kingston, based on these data? Interpret the meaning of your interval, in simple terms understandable by the Mayor.

b. The Mayor of Kingston at the time, Ms. Turner, had stated that “the average visitor to Kingston spends $100 per day in the local economy”. Set up Ms. Turner’s comment as a hypothesis test, and use the data to establish whether her statement can be refuted, or not.

c. Some visitors to Kingston are Canadian, and some from other parts of the world. A sample of 200 visitors on this weekend revealed that 120 were Canadian, and 80 from elsewhere. What is a 95% confidence interval for the proportion of visitors who are Canadian on a weekend such as this?

d. The Mayor had also stated that “more than 50% of the visitors to Kingston are Canadians”. Set up this statement by the Mayor in a hypothesis test framework, and use the data to determine if her statement can be refuted, or not. 

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