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 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	67	8	75
Large	87	13	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 test statistic (to 2 decimals).

b. A newspaper 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