Question

9. In New Mexico, 15% of residents are covered by Medicaid. 10% of residents are covered by Medicare. 3% of residents are dual eligible and covered by both Medicare and Medicaid. Draw a Venn Diagram and then calculate the probability that a New Mexico resident selected at random will be covered by either Medicare or Medicaid.

Answer 1

A: residents are covered by Medicaid

B: residents are covered by Medicare

P(A) = 15% = 0.15

P(B) = 10% = 0.10

P(A and B) = P(A B) = 3% = 0.03

Venn diagram:

Therefore, calculate the probability that a New Mexico resident selected at random will be covered by either Medicare or Medicaid

i.e. Find: P(A B)