5. (12; 2 each) Once upon a time (actually, not so long ago), somewhere in the n

Question

5. (12; 2 each) Once upon a time (actually, not so long ago), somewhere in the neighborhood of 40 million citizens of the USA did not have health insurance. That number came close to reaching 50 million before the passage of the affordable Care Act, but now it is below 30 million. The figures below are drawn from a survey in the year 2003. It is based on a representative sample of the population of individuals 18 years of age and older. 18 to 34 years 35years and older 950 Medical Insurance? Yes 750 No 170 130 Age

Explanation / Answer

a) dividing each cell with total of 2000; below is joint probability distribution:

b)P(no medical insuarance) =0.15

c) P(No insuarance|18-34) =0.085/0.46=0.1848

d) P(No insuarance|>35) 0.065/0.54 =0.1204

e)

P(18-34|no insuarance) =0.375/0.85=0.4412

this is higher than part c.

f)

as P(no insurance) is not equal to P(no isurance|18-34) tehrefore these variables are not statiscally indepdennt but depepdent and a person with age more than 35 years is more inclined to have medical insurance.,

insuarance Yes No total age 18-34 0.375 0.085 0.46 >35 0.475 0.065 0.54 total 0.85 0.15 1

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