Question

With double-digit annual percentage increases in the cost of health insurance, more and more workers are likely to lack health insurance coverage (USA Today, January 23, 2004). The following sample data provide a comparison of workers with and without health insurance coverage for small, medium, and large companies. For the purposes of this study, small companies are companies that have fewer than 100 employees. Medium companies have 100 to 999 employees, and large companies have 1000 or more employees. Sample data are reported for 50 employees of small companies, 75 employees of medium companies, and 100 employees of large companies.

Health Insurance Size of Company Yes No Total Small 36 14 50 Medium 65 10 75 Large 88 12 100

The USA Today 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 %

Answer 1

(a) Here for small companies, out of 50 companies, 36 have health insurance.

Percentages of employees with health insurance = 36/50 * 100 = 72%

Percentages of employees without health insurance = 14/50 * 100 = 28%

for medium companies, out of 75 companies, 65 have health insurance.

Percentage of employees with health insurance = 65/75 * 100 = 86.67% or 87%

Percentage of employees with health insurance = 10/75 * 100 = 13.33% or 13%

For large companies, out of 100 companies, 88 have health insurance.

Percentage of employees with health insurance = 88/100 * 100 = 88%

Percentage of employees with health insurance = 12/100 * 100 = 12%