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Question: 2014 Winter Midterm - 4

Author: Michiel Smid
Let $S$ be a set of size 37, and let $x$, $y$, and $z$ be three distinct elements of $S$. How many subsets of $S$ are there that contain $x$ or $y$, but do not contain $z$?
(a)
$2^{37} - 2^{35}$
(b)
$2^{36} - 2^{35}$
(c)
$2^{36} - 2^{34}$
(d)
$2^{37} - 2^{34}$