Test of independence using level of significance

Assignment Help Basic Statistics

Reference no: EM1316987

Q1) With double-digit annual percentage increase in cost of health insurance, more and more workers are probable to lack health insurance coverage (USA Today, January 23, 2004). Following sample data give a comparison of workers with and without health insurance coverage for small, medium, and large companies. For 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

Carry out test of independence to find out whether employee health insurance coverage is independent of size of company. Use α = 0.05 level of significance.

Reference no: EM1316987

Questions Cloud

Profit and output choice of incumbent firm : How much does it choose to sell when it enters the market? What is the resultant market price? How much does each of the two firms earn in profits?

Probability of average iq from random sample : What is the probability that the average IQ, from a random sample of 64 individuals, is greater than 102?

Generating a brand new database for a company : If you were preparing to generate a brand new database for a company, explain whether you think there is the necessity of interviewing the users to find out what the colors and the designs they like.

Explain the reactions : What happened when 6.0M HCl was added to the contents of the tube in 7a above?

Test of independence using level of significance : Carry out test of independence to find out whether employee health insurance coverage is independent of size of company. Use α = 0.05 level of significance.

Related to super and sub class : Write down a class definition for subclass LawSchool which consists of: A (default) constructor which invokes the superclass constructor along with the value 3 (law school is typically a three year program).

Determine the equilibrium concentrations : Determine the equilibrium concentrations - what are the new equilibrium concentrations of all species.

Normal approximation to binomial distribution : Assuming no discrimination based on gender, what is the probability of getting 41 or fewer women when 100 new employees are hired?

How much more pressure will the gas exert : Find the value of Pressure - How much more pressure will the gas exert if the temperature is raised to 44.1°C?

User Account

All Pages