Question: Question 4:

Economists believe that the economy is finally starting to rebound after years of sluggishness. One of the areas that has come back strongest over the last year is the tourism industry, which is particularly important for areas like South Florida. In the associated data file you will find data on the occupancy of vacation rentals in South Beach in February in both 2013 and 2014

a. Estimate the proportion of units rented during February 2013 and then again in February 2014. What is the overall proportion of units rented in the entire sample (both 2013 and 2014). Provide an intuitive interpretation of these proportions.

b. Calculate a 95% confidence interval for the difference in proportions. Make sure you state all assumptions clearly, define all terms, and explain the approach to interval estimation in this context.

c. On the basis of your findings, write a response to the economists who believe the economy is finally rebounding. Does it appear the tourist industry is rebounding in Miami?