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:
Construct a 95 percent confidence interval for the difference between the proportions of service contracts sold
on treadmills versus exercise bikes.Determine if there is or is not a major difference between the two pieces of
equipment and provide a rationale for your response.
Sample Solution