Assignment: Chapter 12 Assignment

Exercise 12.11 Algorithmic

Health insurance benets vary by the size of the company (the Henry J. Kaiser Family Foundation Iwebsiter June 23, 2016). The sample data below showI 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 10!] employees. Mediumsized companies have 101] 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 enployee to indicate the size of the company. Health Insurance Size of Company Yes No Tolal Elna! 35 15 50 Hedium 6? 3 T5 Large _ 8? 13 100 a. lConduct a test of independence to determine whether health insurance coverage is independent of the size of the company. What is the pvalue? Compute the value of the X2 test statistic (to 2 decimals). '| |___ I 0 The pvame is 9 Using a: = .05 level of signicance, what is your conclusion? Conclude health insurance Beverage is not independent of the size oi the company V g I). 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 L la % Medium I I 0 % Large l l6 % Based on the percentages calculated above, what can you conclude? Small compani have a higher percentage of no coverage than large and medium companies V @