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 ...