You may need to use the appropriate technology to answer this question. Health insurance 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 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. Health Insurance Yes No Size of the Company Small 36 14 Medium 65 10 Large 88 12 (a) Conduct a test of independence to determine whether health insurance coverage is independent of the size of the company. State the null and alternative hypotheses. O Ho: Having health insurance is independent of the size of the company. Ha: Having health insurance is not independent of the size of the company. O Ho: Having health insurance is not independent of the size of the company. Ha: Having health insurance is independent of the size of the company. O Ho: Having health insurance is independent of the size of the company. H₂: The proportion of companies with health insurance benefits is equal for small, medium and large companies. O Ho: Having health insurance is not independent of the size of the company. Ha: The proportion of companies with health insurance benefits is not equal for small, medium and large companies. Find the value of the test statistic. (Round your answer to three decimal places.) What is the p-value? (Round your answer to four decimal places.) p-value= Using a 0.05 level of significance, what is your conclusion? O Reject Ho. We conclude health insurance coverage is independent of the size of the company. O Do not reject Ho. We cannot conclude health insurance coverage and the size of the company are not independent. O Reject Ho. We conclude health insurance coverage is not independent of the size of the company. O Do not reject Ho. We cannot conclude health insurance coverage is independent of the size of the company. (b) A newspaper article indicated employees of small companies are more likely to lack health insurance coverage. Use percentages based on the above data to support this conclusion. (Round your answers to the nearest integer.) For small companies, % do not provide health insurance. For medium companies, health insurance. For large companies, conclusion that small companies are less and large companies. % do not provide % do not provide health insurance. These percentages support the likely to provide health insurance coverage when compared to medium

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.6: Summarizing Categorical Data
Problem 42PFA
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Ch 13
You may need to use the appropriate technology to answer this question.
Health insurance 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 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.
Health Insurance
Yes
No
Size of the Company
Small
36
14
Medium
65
10
Large
88
12
(a) Conduct a test of independence to determine whether health insurance coverage is independent of the size of the company.
State the null and alternative hypotheses.
Ho: Having health insurance is independent of the size of the company.
Ha: Having health insurance is not independent of the size of the company.
O Ho: Having health insurance is not independent of the size of the company.
Ha: Having health insurance is independent of the size of the company.
O Ho: Having health insurance is independent of the size of the company.
Ha: The proportion of companies with health insurance benefits is equal for small, medium and large companies.
O Ho: Having health insurance is not independent of the size of the company.
H₂: The proportion of companies with health insurance benefits is not equal for small, medium and large
companies.
Find the value of the test statistic. (Round your answer to three decimal places.)
What is the p-value? (Round your answer to four decimal places.)
p-value =
Using a 0.05 level of significance, what is your conclusion?
O Reject Ho. We conclude health insurance coverage is independent of the size of the company.
O Do not reject Ho. We cannot conclude health insurance coverage and the size of the company are not
independent.
Reject Ho. We conclude health insurance coverage is not independent of the size of the company.
O Do not reject Ho. We cannot conclude health insurance coverage is independent of the size of the company.
(b) A newspaper article indicated employees of small companies are more likely to lack health insurance coverage. Use
percentages based on the above data to support this conclusion. (Round your answers to the nearest integer.)
For small companies,
% do not provide health insurance. For medium companies,
health insurance. For large companies,
conclusion that small companies are less
and large companies.
% do not provide
% do not provide health insurance. These percentages support the
◆ likely to provide health insurance coverage when compared to medium
Transcribed Image Text:You may need to use the appropriate technology to answer this question. Health insurance 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 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. Health Insurance Yes No Size of the Company Small 36 14 Medium 65 10 Large 88 12 (a) Conduct a test of independence to determine whether health insurance coverage is independent of the size of the company. State the null and alternative hypotheses. Ho: Having health insurance is independent of the size of the company. Ha: Having health insurance is not independent of the size of the company. O Ho: Having health insurance is not independent of the size of the company. Ha: Having health insurance is independent of the size of the company. O Ho: Having health insurance is independent of the size of the company. Ha: The proportion of companies with health insurance benefits is equal for small, medium and large companies. O Ho: Having health insurance is not independent of the size of the company. H₂: The proportion of companies with health insurance benefits is not equal for small, medium and large companies. Find the value of the test statistic. (Round your answer to three decimal places.) What is the p-value? (Round your answer to four decimal places.) p-value = Using a 0.05 level of significance, what is your conclusion? O Reject Ho. We conclude health insurance coverage is independent of the size of the company. O Do not reject Ho. We cannot conclude health insurance coverage and the size of the company are not independent. Reject Ho. We conclude health insurance coverage is not independent of the size of the company. O Do not reject Ho. We cannot conclude health insurance coverage is independent of the size of the company. (b) A newspaper article indicated employees of small companies are more likely to lack health insurance coverage. Use percentages based on the above data to support this conclusion. (Round your answers to the nearest integer.) For small companies, % do not provide health insurance. For medium companies, health insurance. For large companies, conclusion that small companies are less and large companies. % do not provide % do not provide health insurance. These percentages support the ◆ likely to provide health insurance coverage when compared to medium
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