Calculate the expected frequencies for all the cells

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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 the 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 asked the employee to indicate the size of the company.

SIZE OF THE COMPANY

Health insurance small medium large

YES 36 65 88

NO 14 10 12

a) Calculate the expected frequencies for all the cells in the table and find the chi-square test statistic.

b) Conduct a chi-square analysis to determine if an association exists between health insurance coverage and size of the company. Show all steps of a hypothesis test and use an appropriate decision point to support your answers.

Reference no: EM132461626

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