A group of friends wants to go to the amusement park. They have no more than $160 to spend on parking and admission. Parking is $10.50, and tickets cost $32.50 per person, including tax. Write and solve an inequality which can be used to determine xx, the number of people who can go to the amusement park.

Let x be the number of people who can go to the amusement park.

The total cost of parking and tickets for x people is 10.50 + 32.5x.
Since the group has no more than $160 to spend, the inequality is: 10.50 + 32.5x ≤ 160.
To solve for x, subtract 10.50 from both sides of the inequality: 32.5x ≤ 160 - 10.50.
Simplifying the right side: 32.5x ≤ 149.50.
Dividing both sides by 32.5: x ≤ 149.50/32.5.
The solution is x ≤ 4.6.
Since the number of people must be a whole number, the largest possible value for x is 4.
Therefore, the number of people who can go to the amusement park is 4. Answer: \boxed{4}.