The tree diagram of the problem above is attached
There are four outcomes of the two events,
First test - Cancer, Second Test - Cancer, the probability is 0.0396
First test - Cancer, Second Test - No Cancer, the probability is 0.0004
First test - No Cancer, Second Test - There is cancer, the probability is 0.0096
First test - No cancer, Second Test - No cancer, the probability is 0.9054
The probability of someone picked at random has cancer given that test result indicates cancer is
The probability of someone picked at random has cancer given that test result indicates no cancer is
I have a savings accout wit four dollars in it
I think option two is the correct one, because 1 and two contradict eachother and 4 doesn't make sense
The amount the insurance company expects to make on average on every student the pays is found as follows:
40 is greater because we can easily see that 1/4 is not a whole number that is less than 40 and the 40/14 will be changed into a lesser mixed number which again, is less than 40.