Discussion-Confidence Interval
Suppose a sporting goods store sold treadmills, exercise bikes, and equipment service contracts over the past six months as shown in the table below.
|
Equipment and Service Contract Sales |
||
|
|
Treadmill |
Exercise Bike |
|
Equipment Sales |
185 |
123 |
|
Service Contract Sales |
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.
Respond to the following in a Word document and submit:
1. Construct a 95 percent confidence interval for the difference between the proportions of service contracts sold on treadmills versus exercise bikes.
2. Determine if there is or is not a major difference between the two pieces of equipment and provide a rationale for your response.