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). Th 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 Small Medium Large Total 50 75 100 Yes No 17 14 14 61 86 a. Conduct a test of independence to determine whether employee health insurance coverage is independent of the size of the company. Use α = .05. Use Table 12.4 Compute the value of the χ 2 test statistic (to 2 decimals) The p value is between.01 and .025 What is your conclusion? Conclude health insurance coverage is not independent of the size of the company

Answer 1