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Mathematics, 19.02.2021 16:10 dondre54

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. Size of the Company
Health Insurance Small Medium Large
Yes 39 68 91
No 11 7 9

Required:
a. Conduct a test of independence to determine whether health insurance coverage is independent of the size of the company. Using α= 0.05 level of significance.
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 or reject this conclusion.

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