There has been recent interest in a legislative initiative for laws that ensure paid time off for workers who take sick days. Suppose the Bureau of Labor Statistics (BLS)

would like to test if the proportion of workers with paid sick days is influenced by the size of the organization, measured by number of employees. The following table summarizes a random sample of 245 employees by indicating the size of their organization and if they have paid sick days.

Paid Sick Days Number of Employees Yes No 99 or less 47 43 100–499 53 27 500 or more 59 16

a. Using a = 0.05, perform a chi-square test to determine if the size of the employee’s organization and his or her paid sick days category are independent.

b. Determine the p-value for the chi-square test statistic using Excel and interpret its meaning.

c. Verify your results using PHStat.AppendixLO1