In a Venn diagram, the set of elements in any intersection can simply be visualised. The elements contained in the region where the circles representing different sets overlap, are the set of elements of intersection.
In the Venn diagram given, the set of elements contained in the region where the circles representing A and B overlap are {e, h}.
We are asked to find 5% od 320, because we know that 5% of 320 insurances are rejected. 5%=0.05 Now we can multiply 0.05 by 320 0.05*320=16 - its our result