Health insurer benefits vary by the size of the company. The sample data below show the number of companies providing health insurance for small, medium, and large companies. For the purpose of this study, small companies are companies that have fewer than 100 employees. Medium-sized companies have 100 to 999 employees, and largevcompanies 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. Health Insurance 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 x2 test statistic (to 2 decimal)
Health insurer benefits vary by the size of the company. The sample data below show the number of companies providing health insurance for small, medium, and large companies. For the purpose of this study, small companies are companies that have fewer than 100 employees. Medium-sized companies have 100 to 999 employees, and largevcompanies 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.
Health Insurance
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 x2 test statistic (to 2 decimal)
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