Question

An institute surveyed small business owners across a state that employed 50 or fewer employees. The purpose of the study was to gain insight on the current small business​ health-care environment. Small business owners were asked if they offered​health-care plans to their employees and if​ so, what portion​ (%) of the employee monthly​ health-care premium the business paid. The accompanying frequency distribution was formed to summarize the portion of premium paid for 87 small businesses who offer​health-care plans to employees. Complete parts​ (a) through​(c).

Portion of Premium Paid (%) Frequency
less than 1% 3
1% but less than 26% 3
26% but less than 51% 14
51% but less than 76% 23
76% but less than 100%

22
100% 22
A. What percentage of small businesses pays less than 26% of the employee monthly health care premium? __% (round to two decimal places as needed)

B. What percentage of small businesses pays less than 26% and 75% of the employee monthly health care premium? __% (round to two decimal places as needed)

C. What percentage of small businesses pays less than 75% of the employee monthly health care premium? __% (round to two decimal places as needed)

Answer 1

6.90%; 42.53%; 50.57%

Explanation:

a) To determine the percentage of small business that pays less than 26%;

= (3+3/3+3+14+23+22+2)×100%

=6/87 × 100%

=6.89655%

Approximately 6.90%

b) That pay between 26% and 75%

=14+23/87 ×100%

=42.53%

c) That pay more than 75%

=22+22/87 ×100%

=50.57%