1. The problem asks how to determine if pool ABCD is similar to pool EFGH using geometric transformations. 2. Similarity between two shapes means one can be obtained from the other by a sequence of translations, rotations, reflections, and dilations (scaling). 3. To check similarity, we can translate one shape so a corresponding point matches, then dilate (scale) it by the ratio of corresponding side lengths. 4. Here, the correct approach is to translate EFGH so that point E coincides with point A of ABCD, then dilate EFGH by the ratio of corresponding sides AB to EF, i.e., scale by $\frac{AB}{EF}$. 5. This ensures the shapes are aligned and scaled properly to check if all corresponding sides and angles match, confirming similarity. 6. Therefore, the correct statement is: "Translate EFGH so that point E of EFGH lies on point A of ABCD, then dilate EFGH by the ratio $\frac{AB}{EF}$."