Take two events A and B. For example, let A be the event “Receive a score of 95% on the econometrics exam” and let B be the event “Study econometrics 12 hours a day”. We might be interested in the ...

# Addition Theorem: P(A ∪ B) = P(A) + P(B) - P(A ∩ B) def addition_theorem(prob_a, prob_b, prob_a_and_b): Calculate the probability of A or B happening (union of A and B). Args: prob_a (float): ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Probability is the measure of the likelihood that an event will occur. In simple terms, it tells us how likely it is for a particular outcome to take place. When there are multiple events, calculating ...