In: Statistics and Probability
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 1,000 or more employees. 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.
Size of Company Yes No Total
Small 35 15 50
Medium 69 6 75
Large 85 15 100
a. Conduct a test of independence to determine whether health insurance coverage is independent of the size of the company. What is the p-value? Compute the value of the x^2 statistic
b. A newspaper article indicated that employees of small companies are more likely to lack health insurance. Calculate the percentage of employees without health insurance based on company size.
Small __%
Medium___%
Large___%
Any help is appreciated. Thank You!