Question

Suppose the number of equipment sales and service contracts that a store sold during the last six months for treadmills and exercise bikes was as follows:

Equipment Sales and Service Contracts Sold

	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.

Complete the following questions in the space provided below:

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?

Answer 1

Is there a major difference between the two pieces of equipment? Why or why not?

Ans: No, because the Confidence interval contains the value zero.