With double-digit annual percentage increases in the 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 a 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 that have fewer than 100 employees. Medium companies have 100 to 999 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
S M L
Yes 32, 69, 88
No 18, 06, 12
Total 50, 75, 100
a.Conduct a test of independence to determine whether employee health insurance coverage is independent of the size of the company. Use α = .05.
Compute the value of the χ 2 test statistic (to 2 decimals).