Full question:
Astudy of 31,000 hospital admissions in New York State found that 4% of the admissions
led to treatment-caused injuries. One-seventh of these treatment-caused injuries resulted in
death, and one-fourth were caused by negligence. Malpractice claims were filed in one out
of 7.5 cases involving negligence, and payments were made in one out of every two claims
What is the probability a person admitted to the hospital is paid a malpractice claim (to decimals)
Answer:
Explanation:
Since 4% of admissions lead to treatment-caused injuries, we have 4/100×31000= 1240 treatment caused injuries for every 31000 people admitted
1/7 resulted in death = 1/7×1240= 177 people die for every 1240 treatment caused injuries
1/4 from negligence= 1/4×1240= 310 people get treatment caused injuries from negligence for every 1240 people
Malpractice claims in one of out of 7.5 cases of negligence= 13.3% of negligence cases= 0.1333×310= 41 claims for every 1240 people with treatment caused injuries
Payments were made in one out of every two claims, therefore payments for claims =50% of 41 cases of negligence= 21 payments(approximately) for every 1240 people with treatment caused injuries
Probability= number of favorable outcomes /total number of outcomes
Probability that a person admitted into the hospital will be paid a claim= 21/31000= 0.000677
