With double-digit annual percentage increase in cost of health insurance, more and more workers are likely to lack health insurance coverage (USA Today, January 23, 2004). The following sample data provide the comparison of workers with and without health insurance coverage for small, medium, and large companies. For the purposes of this study, small companies are companies which have fewer than 100 employees. Medium companies have 100 to 99 employees, and large companies have 1000 or more employees. Sample data are reported for 50 employees of small companies, 75 employees of medium companies, and 100 employees of large companies.
| |
Health Insurance
|
|
Size of company
|
Yes
|
No
|
Total
|
|
Small
|
36
|
14
|
50
|
|
Medium
|
65
|
10
|
75
|
|
Large
|
88
|
12
|
100
|
|
Total
|
189
|
36
|
225
|
Conduct the test of independence to determine whether employee health insurance coverage is independent of the size of company. Employ α = 0.05 level of significance.