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1. A couple is interested in having three (3) children. From past family history, the probability of having a boy is 60% and a girl is 40%. Create a decision tree if you’d like to help in answering the following questions.

2. An insurance company pays hospital claims. For the end of the fiscal year, 1,300 total claims were made to the hospital. The number of claims that include 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 occurrence of emergency room charges is independent of the occurrence of operating room charges on hospital claims.

Let E be the emergency room charges and O be the operating room charges.

What is the probability that a claim includes operating room charges

3. An insurance company pays hospital claims. For the end of the fiscal year, 1,300 total claims were made to the hospital. The number of claims that include 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 occurrence of emergency room charges is independent of the occurrence of operating room charges on hospital claims.

Let E be the emergency room charges and O be the operating room charges.

What is the probability that a claim submitted to the insurance company includes emergency room charges