Health insurance benefits vary by the size of the company (Atlanta Business Chronicle, December 31,2010). The sample data below show the number of companies providing health insurance for small, medium , and large companies, For purposes of this study, small companies are companies have 100 to 999 employees, and larger companies have 1000 or more employee. The questionnaire sent to 225 employee. The questionnaire sent to 225 employee asked whether or not the employee had health insurance and then asked the employee to indicate the size of the company.

Excel File: data 12-11.xls

a. Conduct a test of independence to determine whether health insurance coverage is independent of the size of company . Using a .05 level of significance. Compute the value of the x2 test statistic (to 2 decimals).
The p-value is -select your answer-
What is your conclusion?
Select your conclusion?
b. A newspaper article indicated employees of small companies are more likely to lack health insurance coverage. Use percentages based on the above data to support or reject this conclusion. (Round to whole numbers.)
It ended up small in the box there, so here it is transcribed
"Health insurance benefits vary by the size of the company (Atlanta Business Chronicle, December 31, 2010). The sample data below show the number of companies providing health insurance for small, medium, and large companies. For purposes of this study, small companies are companies that have fewer than 100 employees. Medium-sized companies have 100 to 999 employees, and larger companies have 1000 or more employee. The questionnaire sent to 225 employees asked whether or not the employee had health insurance and then asked the employee to indicate the size of the company."
a. Conduct a test of independence to determine whether health insurance coverage is independent of the size of the company. Using a .05 level of significance.
Compute the value of the 2 test statistic (to 2 decimals).
The p-value is
What is your conclusion?
b. A newspaper article indicated employees of small companies are more likely to lack health insurance coverage. Use percentages based on the above data to support or reject this conclusion. (Round to whole numbers.)

Transcribed Image Text:

ie ofthe Company SMedien Lge Health Imurnce Small Medium Large