Question

ny 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?

Answer 1

All the conditions for the chi square test of homogeneity are satisfied.

Explanation:

The conditions for the chi square test are

1) the sample is a random sample

2) the variable under study is categorical

3) all expected value of the number of sample observations are greater or equal to 5.

A)The observations must be independent

B) for 2 categories the expected values must be at least 5

C) for the 3 categories the expected values must be at least 1 and no more than 20% may be smaller than 5

The observations given are independent that is not equally likely i.e do not have equal chances of occurrences or are not dependent on each other.

4) the overall sample must be resonably large that is greater than 50