Construct a 95 percent confidence interval for the difference between the proportions of service contracts sold on treadmills versus exercise bikes.

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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