Why is the result consistent with the second requirement


Problem

The Outcome (A or B) sometimes is called the union of A and B. The union event occurs if either Outcome A or Outcome B (or both) occurs. Suppose that both A and B can happen at the same time (i.e., their areas overlap in a Venn diagram). Show that P(A or B) = P(A) + P(B) P(A and B). Use a Venn diagram to explain. Why is this result consistent with the second requirement that probabilities add up?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Econometrics: Why is the result consistent with the second requirement
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