Health insurance benefits vary by the size of the company (theHenry J. Kaiser Family Foundation website, June 23, 2016). Thesample data below show the number of companies providing healthinsurance for small, medium, and large companies. For the purposesof this study, small companies are companies that have fewer than100 employees. Medium-sized companies have 100 to 999 employees,and large companies have 1,000 or more employees. The questionnairesent to 225 employees asked whether or not the employee had healthinsurance and then asked the employee to indicate the size of thecompany.
Size of Company Yes No Total
Small 35 15 50
Medium 69 6 75
Large 85 15 100
a. Conduct a test of independence to determine whether healthinsurance coverage is independent of the size of the company. Whatis the p-value? Compute the value of the x^2 statistic
b. A newspaper article indicated that employees of smallcompanies are more likely to lack health insurance. Calculate thepercentage of employees without health insurance based on companysize.
Small __%
Medium___%
Large___%
Any help is appreciated. Thank You!
