Question

Health insurance benefits vary by the size of the company (the Henry J. Kaiser Family Foundation website, June 23, 2016). The sample data below show the number of companies providing health insurance for small, medium, and large companies. For the purposes of this study, small companies are companies that have fewer than  employees. Medium-sized companies have  to  employees, and large companies have  or more employees. The questionnaire sent to  employees asked whether or not the employee had health insurance and then asked the enployee to indicate the size of the company.

		Health Insurance
	Size of Company	Yes	No	Total
	Small	34	16	50
	Medium	69	6	75
	Large	86	14	100

a. Conduct a test of independence to determine whether health insurance coverage is independent of the size of the company. What is the -value?

Compute the value of the  test statistic (to 2 decimals).

The -value is - Select your answer -less than .005between .005 and .01between .01 and .025between .025 and .05between .05 and .10greater than .10Item 2

Using  level of significance, what is your conclusion?

- Select your answer -Cannot reject the assumption that health insurance coverage and size of the company are independentConclude health insurance coverage is not independent of the size of the companyItem 3

b. A newspaper article indicated employees of small companies are more likely to lack health insurance coverage. Calculate the percentages of employees without health insurance based on company size (to the nearest whole number).

Small
Medium
Large

Based on the percentages calculated above, what can you conclude?

- Select your answer -Large companies have a higher percentage of no coverage than medium and small companiesMedium companies have a higher percentage of no coverage than large and small companiesSmall, medium, and large companies all have roughly the same percentage of no coverageSmall companies have a higher percentage of no coverage than large and medium companiesItem 7

Answer 1