Question: With double digit annual percentage increases in the cost of health insurance, more and more workers are likely to lack health insurance coverage. The following sample data provide a comparison of workers with and without health insurance coverage for small. Medium and large companies. 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                        15                        50

Medium                             65                        10                        75

Large                                 88                        12                        100

1. Conduct a test of independence to determine whether employee health insurance coverage is independent of the size of the company. Using level of significant of 0.05. What is your conclusion?
2. The USA Today article indicated employees of small companies are more likely to lack health insurance coverage. Use percentages based on the preceding data to support this conclusion

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