Suppose the number of equipment sales and service contracts that a store sold during the last six (6) months for treadmills and exercise bikes was as follows:
Treadmill Exercise Bike
Total sold 185 123
Service contracts 67 55
The store can only sell a service contract on a new piece of equipment. Of the 185 treadmills sold, 67 included a service contract and 118 did not.
1.Construct a 95 percent confidence interval for the difference between the proportions of service contracts sold on treadmills versus exercise bikes.
2.Is there a major difference between the two pieces of equipment? Why or why not?
1. proportions of service contracts sold on treadmills=67/185=0.362
and proportions of service contracts sold on ...
The solution gives detailed steps on finding the confidence interval for two proportions and then analyzing the result.