Explain the sales and service contracts


Response to the following problem:

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.

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?

 

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