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An insurance company pays hospital claims . The number of claims that includes e

ID: 1890742 • Letter: A

Question

An insurance company pays hospital claims . The number of claims that includes emergency room or operating room charges is 80% of the total number of claims . The number of claims that do not include emergency room charges is 30% of the total number of claims . The occurence of emergency room charges is independent of the occurence of operating room charges on hospital claims .

Caculate the probability that a claim submitted to the insurance company includes operating room charges .

Please show me details ...Thanks ..

Explanation / Answer

mistake in calculation do your own Now it seems like a pretty straightforward solution: (EuO)=.80 (therefore (EuO)'=.15) E'=.25 (therefore E=.75) Find O. Now, since E=.75 and EuO=.80 then it seems that OnE'=.10. And there's no reason that O and E have to intersect at all, as far as I can see. So not only does OnE'=.10, O can equal .10, E can equal .75, and the "none of the above" state can equal .15, problem solved, O = .10. Problem is, this exam states the answer is x

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