Two conditions:

1. The case where one event or another will occur

2. The situation where two events will both occur

“What is the probability that today’s demand will exceed our inventory?”

“What is the probability that today’s demand will exceed our inventory and that more than 10 percent
of our sales force will not report for work?”

P(A) = the probability of event A happening

A single probability means that only one event can take place. It is called a marginal or unconditional
probability.

Take an example: chance of winning a lottery if a total of 1000 people purchased one ticket each.

P(A or B) = P(A) + P(B) – P(AB)

Vein diagrams to depict and and or.

P(Ace or Heart)

The employees of a certain company have elected five of their number to represent them on the
employee-management productivity council. Profiles of the five are as follows:

1. male age 30

2. male 32

3. female 45

4. female 20

5. male 40

This group decides to elect a spokesperson by drawing a name from a hat. Our question is, “What is the
probability the spokesperson will be either female or over 35?”

Probability of one or more events not mutually exclusive

Probability of one or more mutually exclusive events

P(A or B) = the probability of either A or B happening

P(A or B) = P(A) + P(B)

Five e qually capable students are waiting for a summer job interview with a company that has
announced that it will hire only one of the five by random drawing. The group consists of Bill, Helen,
John, Sally, and Walter. If our question is, “What is the probability that John will be the candidate?”

“What is the probability that either John or Sally will be the candidate?”

PROBABILITIES UNDER CONDITIONS OF STATISTICAL INDEPENDENCE

There are three types of probabilities under statistical independence:

1. Marginal: P(H)

2. Joint: P(H1T2)

3. Conditional P(T2/H1)