Health insurance benefits vary by the size of the company. The sample data below

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 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 company. Conduct a test of independence to determine whether health insurance coverage is independent of the size of the company. What is the P-value? Use a 0.05 level of significance, what is your conclusion?

Explanation / Answer

here applying chi square test :

for above test stat X2=6.944 and degree of freedom =2

p value =0.0310

as p value is less then 0.05 level , we reject the null hypothesis, and conclude that health insurance coverage is dependent of the size of the company

Observed O small medium large Total Yes 36 65 88 189 No 14 10 12 36 Total 50 75 100 225 Expected E=rowtotal*column total/grand total small medium large Total Yes 42.000 63.000 84.000 189 No 8.000 12.000 16.000 36 Total 50 75 100 225 chi square =(O-E)^2/E small medium large Total Yes 0.857 0.063 0.190 1.111 No 4.500 0.333 1.000 5.833 Total 5.357 0.397 1.190 6.944

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.