A Survey Conducted in a Small Business Yielded the Results $0.05$

question 87

Essay

A survey conducted in a small business yielded the results shown in the table.

i) Test the claim that health care coverage is independent of gender. Use a $0.05$ significance level.
ii) Using Yates' correction, replace $\sum \frac { ( \mathrm { O } - \mathrm { E } ) ^ { 2 } } { \mathrm { E } }$ with $\sum \frac { ( | \mathrm { O } - \mathrm { E } | - 0.5 ) ^ { 2 } } { \mathrm { E } }$ and repeat the test. What effect does Yates' correction have on the value of the test statistic?

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Definitions:

Return On Equity

A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Dividend Payout Ratio

The percentage of net income that a company pays out to its shareholders as dividends, indicating how much money a company returns to shareholders versus retaining.

Price-Earnings Ratio

A measure of a company's current share price relative to its per-share earnings.

Dividend Payout Ratio

A financial ratio that shows the percentage of a company's net income that is paid out to its shareholders as dividends.