.
a class of 38 students took two tests in local history. 32 students passed test 1 and 34 passed test 2. what is the largest possible number of students who did not passed both test?
---------------------------------------------------
The number of students who passed both tests is 32 + 34 - 38 = 28.
(This is the intersection of two sub-sets: those who passed the 1-st exam and those who passed the 2-nd exam).
Hence, the number of those who didn't pass both tests is 38 - 28 = 10.
For details see the lesson Counting elements in sub-sets of a given finite set in this site.