Reference no: EM131430644

A. Use the Internet or Strayer Library to research articles on confidence interval and its application in business. Select one (1) company or organization which utilized confidence interval technique to measure its performance parameters (e.g., mean, variance, mean differences between two processes, etc.). Give your opinion as to whether or not the utilization of such a technique improves business process for the company or organization that you selected. Justify your response.

B. 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?