In reality, the two rules simplify to just one rule, the second one. That's because in the first case, the probability of two mutually exclusive events both happening is 0.

The addition rule is used to determine the probability of at least one of two (or more) events occurring. In general, the probability of either event A or B is given by: P(A or B) = P(A) + P(B) - P(A ...

The Power of Probabilistic Reasoning. Bayes’s Rule is a theorem in probability theory that answers the question, “When you encounter new information, how much should it change your confidence ...

Bayes' theorem is a formula for calculating the probability of an event. Learn how to calculate Bayes' theorem and see examples.

However, the mathematics of probability has rules that you can use in a much more disciplined way than guesswork to predict possible outcomes for your business plans.

Of the two main schools of thought in retirement income planning, the probability-based school of thought is probably most familiar to the public and financial professionals. Its roots grow from ...