Addition rule of probability
The addition rule gives P(A or B) = P(A) + P(B) − P(A and B), the probability that at least one of two events occurs, subtracting the overlap so it isn't counted twice.
What it is
See it move
Among 200 job applicants, 120 hold a business degree and 50 have worked abroad, with 30 holding both. Adding 120/200 and 50/200 double-counts those 30, so the overlap is subtracted once: P(degree or abroad) = 120/200 + 50/200 − 30/200 = 140/200, or 70 per cent.
The formula
Variables
- Probability that event A occurs
- Probability that event B occurs
- Probability that both A and B occur in the same trial
General addition rule for the probability that at least one of two events occurs; the overlap P(A and B) is subtracted once to avoid double-counting.
Check yourself
Among 150 weekly transactions at a retail store, 90 include a discount coupon, 45 are paid with a loyalty card, and 20 transactions use both. What is the probability that a randomly chosen transaction uses a coupon or a loyalty card?