double-digit annual percentage increases in the cost of health insurance, more and more workers are likely to lack health ance coverage (USA Today, January 23, 2004). The following sample data provide a comparison of workers with and without h insurance coverage for small, medium, and large companies. For the purposes of this study, small companies are companies have fewer than 100 employees. Medium companies have 100 to 999 employees, and large companies have 1000 or more oyees. Sample data are reported for 50 employees of small companies, 75 employees of medium companies, and 100 employees ge companies. Health Insurance e of Company all Yes No Total 31 19 50 dium 70 5 75 ge unduct a test of independence to determine whether employee health insurance coverage is independent of the size of the 88 12 100 mpany. Use a = .05. Use Table 12.4. 2 mpute the value of the X test statistic (to 2 decimals).

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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.

### Table: Health Insurance Coverage

| Size of Company | Yes | No | Total |
|-----------------|-----|----|-------|
| Small           | 31  | 19 | 50    |
| Medium          | 70  | 5  | 75    |
| Large           | 88  | 12 | 100   |

1. Conduct a test of independence to determine whether employee health insurance coverage is independent of the size of the company. Use \(\alpha = .05\). Use Table 12.4.

   - Compute the value of the \(\chi^2\) test statistic (to 2 decimals):
     - [Input box]
   
   - The p-value is:
     - [Select]
   
   - What is your conclusion?
     - [Select]

2. 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: [Input box] %
   - Medium: [Input box] %
   - Large: [Input box] %
Transcribed Image Text: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. ### Table: Health Insurance Coverage | Size of Company | Yes | No | Total | |-----------------|-----|----|-------| | Small | 31 | 19 | 50 | | Medium | 70 | 5 | 75 | | Large | 88 | 12 | 100 | 1. Conduct a test of independence to determine whether employee health insurance coverage is independent of the size of the company. Use \(\alpha = .05\). Use Table 12.4. - Compute the value of the \(\chi^2\) test statistic (to 2 decimals): - [Input box] - The p-value is: - [Select] - What is your conclusion? - [Select] 2. 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: [Input box] % - Medium: [Input box] % - Large: [Input box] %
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