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 than100employees. Medium-sized companies have100to999employees, and large companies have1000or more employees. The questionnaire sent to225employees asked whether or not the employee had health insurance and then asked the employee to indicate the size of the company.

Health Insurance

Size of company	Yes	No	Total
Small	39	11	50
Medium	65	10	75
Large	85	15	100

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

1. Compute the value of the X2 test statistic (to 2 decimals)

The p-value is

Using cx = 0.05 level of significance, what is your conclusion?

Cannot reject the assumption that health insurance coverage and size of the company are independent.

Conclude health insurance coverage is not independent of the size of the company.

1. A news paper 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 companies

Medium companies have a higher percentage of no coverage than large and small companies

Small, medium, and large companies all have roughly the same percentage of no coverage

Small companies have a higher percentage of no coverage than large and medium companies