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3.3 Two Basic Rules of Probability

When calculating probability, there are two rules to consider when determining if two events are independent or dependent and if they are mutually exclusive or not.

The Multiplication Rule

If A and B are two events defined on a sample space, then: P(A AND B) = P(B)P(A|B).

The Addition Rule

If A and B are independent, then P(A|B) = P(A). Then P(A AND B) = P(A|B)P(B) becomes P(A AND B) = P(A)P(B).

If A and B are defined on a sample space, then: P(A OR B) = P(A) + P(B) - P(A AND B).

If A and B are mutually exclusive, then P(A AND B) = 0. Then P(A OR B) = P(A) + P(B) - P(A AND B) becomes P(A OR B) = P(A) + P(B).