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 100 employees. Medium sized companies have 100 to 999 employees, and large companies have 1000 or more companies. The questionnaire sent to 255 employees asked whether or not the employee had health insurance and then asked the employee to indicate the size of the company.

CHART:

Size of the Company YES NO    TOTAL

Small    37    13    50

Medium    66 9 75

Large 86 14    100

My Question:

Conduct a test of independence to determine whether health insurance coverage is independent of the size of the company. Compute the value of the test statistic.

Answer 1

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