A manufacturing company with 350 employees is changing the employee health insurance plan to either plan A or plan B. The company wants to know if employees have a preference between the two plans and whether or not preference differs between those employees who have family members covered under the current plan (group 1) and those who do not (group 2). The human resources office takes a simple random sample from each of the two groups, sends information about both plans to the employees in each sample, and asks them whether they prefer plan A or plan B. The table summarizes the responses received, with expected cell counts in parentheses.

Plan A Plan B Total
Yes (group 1) 40 (32.5) 20 (27.5) 60
No (group 2) 6 (13.5) 19 (11.5) 25
Total 46 39 85

Which statement is true about whether the conditions for the chi-square test for homogeneity have been met?
a. A simple random sample should have been taken from all the employees, and then each employee in the sample should have been asked their plan preference and whether or not they have family members covered under the current health insurance plan.
b. The expected cell counts are not large enough to apply the chi-square test for homogeneity.
c. The total sample size is not large enough to apply the chi-square test for homogeneity.
d. The total sample size is too large to apply the chi-square test for homogeneity.
e. All conditions necessary to apply the chi-square test for homogeneity are satisfied here.

Answer: D. The total sample size is too large to apply the chi-square test for homogeneity.

Step-by-step explanation: When sampling without replacement, the sample size should not exceed 10 percent of the population size. Here, the sample size of 85 is just over 24 percent of the population of 350 company employees.

The total sample size is too large to apply the chi-square test for homogeneity.

We have given that,

A manufacturing company with 350 employees is  changing the employee health insurance plan to either plan A or plan B.

                         Plan A        Plan B        Total

yes(group 1)       40(32.5)   20(27.5)      60

No (group 2)      6 (13.5)     (11.5) 25       25

Total                   46             39              85

We have to find which statement is true,

Each sample unit of the population has only one chance to be selected in the sample. we can select one sample only way and after selection we cannot pot this sample in the sample space again.

The sample size should not exceed 10 percent of the population size.when we use sampling  without replacement,

Here, the sample size of 85 is just over 25 percent of the population of 350 company employees.

Therefore,the total sample size is too large to apply the chi-square test for homogeneity.

To learn more about the sample space replacement and without replacement visit:

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