Module 6 · Probability and Random Variables Lesson 52 of 120
Probability Rules, Complements, Unions, and Intersections
Avoiding double-counting fraud rules.
Transcript
21 sentences · select one to jump thereCheck your understanding
Why subtract the overlap exactly once?
Code lab
Run it yourself
The lesson source in 7 languages. Edit it, run TypeScript and Python right here, and compare with the expected output.
/**
* Fintech Math Bootcamp · Lesson 052 of 120
* Probability Rules, Complements, Unions, and Intersections
* Module 06: Probability and Random Variables
*
* Scenario: Avoiding double-counting fraud rules
* Rule: P(A∪B)=P(A)+P(B)−P(A∩B)
*
* Try it: Why subtract the overlap exactly once?
*
* Lesson article: https://thefintechbuilder.com/financial-mathematics-statistics-and-data-foundations/probability-and-random-variables/probability-rules-complements-unions-and-intersections/
* Free course: https://courses.thefintechbuilder.com
* Synthetic teaching example, not financial advice or a production library.
*/
export function lesson052() {
const a=.30, b=.20, both=.08;
if (both < Math.max(0,a+b-1) || both > Math.min(a,b))
throw new Error("Impossible intersection");
const result = {either:a+b-both, neither:1-(a+b-both),
onlyA:a-both, onlyB:b-both};
return result;
}
export const checkedResult = {"either":0.42,"neither":0.5800000000000001,"onlyA":0.21999999999999997,"onlyB":0.12000000000000001};
// Run this file directly: npx tsx lessons/06-probability-and-random-variables/052-probability-rules-complements-unions-and-intersections.ts
if (process.argv[1] && import.meta.url.endsWith(process.argv[1].replace(/\\/g, "/").split("/").pop()!)) {
console.log(JSON.stringify(lesson052(), null, 2));
}
Your output
Press Run to execute the code in your browser.
Expected output
{
"either": 0.42,
"neither": 0.5800000000000001,
"onlyA": 0.21999999999999997,
"onlyB": 0.12000000000000001
}# Fintech Math Bootcamp · Lesson 052 of 120
# Probability Rules, Complements, Unions, and Intersections
# Module 06: Probability and Random Variables
#
# Scenario: Avoiding double-counting fraud rules
# Rule: P(A∪B)=P(A)+P(B)−P(A∩B)
#
# Try it: Why subtract the overlap exactly once?
#
# Lesson article: https://thefintechbuilder.com/financial-mathematics-statistics-and-data-foundations/probability-and-random-variables/probability-rules-complements-unions-and-intersections/
# Free course: https://courses.thefintechbuilder.com
# Synthetic teaching example, not financial advice or a production library.
import json
def lesson052() -> dict:
a, b, both = 0.30, 0.20, 0.08
if both < max(0, a + b - 1) or both > min(a, b):
raise ValueError("Impossible intersection")
return {
"either": a + b - both,
"neither": 1 - (a + b - both),
"onlyA": a - both,
"onlyB": b - both,
}
if __name__ == "__main__":
print(json.dumps(lesson052(), indent=2))
Your output
Press Run to execute the code in your browser.
Expected output
{
"either": 0.42,
"neither": 0.5800000000000001,
"onlyA": 0.21999999999999997,
"onlyB": 0.12000000000000001
}/**
* Fintech Math Bootcamp · Lesson 052 of 120
* Probability Rules, Complements, Unions, and Intersections
* Module 06: Probability and Random Variables
*
* Scenario: Avoiding double-counting fraud rules
* Rule: P(A∪B)=P(A)+P(B)−P(A∩B)
*
* Try it: Why subtract the overlap exactly once?
*
* Lesson article: https://thefintechbuilder.com/financial-mathematics-statistics-and-data-foundations/probability-and-random-variables/probability-rules-complements-unions-and-intersections/
* Free course: https://courses.thefintechbuilder.com
* Synthetic teaching example, not financial advice or a production library.
*/
import java.util.ArrayList;
import java.util.LinkedHashMap;
import java.util.List;
import java.util.Map;
public class Main {
static Map<String, Object> lesson052() {
double a = 0.30, b = 0.20, both = 0.08;
if (both < Math.max(0, a + b - 1) || both > Math.min(a, b)) {
throw new IllegalArgumentException("Impossible intersection");
}
Map<String, Object> result = new LinkedHashMap<String, Object>();
result.put("either", a + b - both);
result.put("neither", 1 - (a + b - both));
result.put("onlyA", a - both);
result.put("onlyB", b - both);
return result;
}
public static void main(String[] args) {
System.out.println(toJson(lesson052(), ""));
}
// --- Minimal JSON printer: maps keep insertion order, 2-space indent. ---
static String toJson(Object value, String indent) {
if (value == null) return "null";
if (value instanceof String) return "\"" + value + "\"";
if (value instanceof Double) return formatNumber((Double) value);
if (value instanceof Number) return value.toString();
if (value instanceof double[]) {
List<Object> items = new ArrayList<Object>();
for (double v : (double[]) value) items.add(v);
return toJson(items, indent);
}
String inner = indent + " ";
StringBuilder sb = new StringBuilder();
if (value instanceof Map) {
Map<?, ?> map = (Map<?, ?>) value;
if (map.isEmpty()) return "{}";
sb.append("{\n");
int i = 0;
for (Map.Entry<?, ?> entry : map.entrySet()) {
sb.append(inner).append('"').append(entry.getKey()).append("\": ")
.append(toJson(entry.getValue(), inner))
.append(++i < map.size() ? ",\n" : "\n");
}
return sb.append(indent).append('}').toString();
}
List<?> list = (List<?>) value;
if (list.isEmpty()) return "[]";
sb.append("[\n");
for (int i = 0; i < list.size(); i++) {
sb.append(inner).append(toJson(list.get(i), inner))
.append(i + 1 < list.size() ? ",\n" : "\n");
}
return sb.append(indent).append(']').toString();
}
static String formatNumber(double v) {
if (Double.isNaN(v) || Double.isInfinite(v)) return "null";
if (v == Math.rint(v) && Math.abs(v) < 1e15) return Long.toString((long) v);
return Double.toString(v);
}
}
No browser runner for Java yet
Read the code here, then run it in your own toolchain or a ready-made cloud workspace.
Expected output
{
"either": 0.42,
"neither": 0.5800000000000001,
"onlyA": 0.21999999999999997,
"onlyB": 0.12000000000000001
}// Fintech Math Bootcamp · Lesson 052 of 120
// Probability Rules, Complements, Unions, and Intersections
// Module 06: Probability and Random Variables
//
// Scenario: Avoiding double-counting fraud rules
// Rule: P(A∪B)=P(A)+P(B)−P(A∩B)
//
// Try it: Why subtract the overlap exactly once?
//
// Lesson article: https://thefintechbuilder.com/financial-mathematics-statistics-and-data-foundations/probability-and-random-variables/probability-rules-complements-unions-and-intersections/
// Free course: https://courses.thefintechbuilder.com
// Synthetic teaching example, not financial advice or a production library.
package main
import (
"encoding/json"
"errors"
"fmt"
"os"
)
// EventRules holds the union, its complement, and each rule's exclusive share.
type EventRules struct {
Either float64 `json:"either"`
Neither float64 `json:"neither"`
OnlyA float64 `json:"onlyA"`
OnlyB float64 `json:"onlyB"`
}
func lesson052() (EventRules, error) {
a, b, both := 0.30, 0.20, 0.08
if both < max(0, a+b-1) || both > min(a, b) {
return EventRules{}, errors.New("Impossible intersection")
}
return EventRules{
Either: a + b - both,
Neither: 1 - (a + b - both),
OnlyA: a - both,
OnlyB: b - both,
}, nil
}
func main() {
result, err := lesson052()
if err != nil {
fmt.Fprintln(os.Stderr, err)
os.Exit(1)
}
out, _ := json.MarshalIndent(result, "", " ")
fmt.Println(string(out))
}
No browser runner for Go yet
Read the code here, then run it in your own toolchain or a ready-made cloud workspace.
Expected output
{
"either": 0.42,
"neither": 0.5800000000000001,
"onlyA": 0.21999999999999997,
"onlyB": 0.12000000000000001
}/**
* Fintech Math Bootcamp · Lesson 052 of 120
* Probability Rules, Complements, Unions, and Intersections
* Module 06: Probability and Random Variables
*
* Scenario: Avoiding double-counting fraud rules
* Rule: P(A∪B)=P(A)+P(B)−P(A∩B)
*
* Try it: Why subtract the overlap exactly once?
*
* Lesson article: https://thefintechbuilder.com/financial-mathematics-statistics-and-data-foundations/probability-and-random-variables/probability-rules-complements-unions-and-intersections/
* Free course: https://courses.thefintechbuilder.com
* Synthetic teaching example, not financial advice or a production library.
*/
#include <algorithm>
#include <charconv>
#include <cmath>
#include <iostream>
#include <stdexcept>
#include <string>
#include <utility>
#include <vector>
// --- Minimal JSON value and printer: objects keep insertion order, 2-space indent. ---
struct Json {
enum class Kind { Null, Number, Text, Array, Object };
Kind kind = Kind::Null;
double number = 0;
std::string text;
std::vector<std::string> keys; // object keys, parallel to items
std::vector<Json> items; // array elements or object values
};
Json num(double v) { Json j; j.kind = Json::Kind::Number; j.number = v; return j; }
Json str(const std::string& s) { Json j; j.kind = Json::Kind::Text; j.text = s; return j; }
Json arr(const std::vector<Json>& values) { Json j; j.kind = Json::Kind::Array; j.items = values; return j; }
Json arr(const std::vector<double>& values) {
std::vector<Json> items;
for (double v : values) items.push_back(num(v));
return arr(items);
}
Json obj(const std::vector<std::pair<std::string, Json>>& fields) {
Json j;
j.kind = Json::Kind::Object;
for (const auto& [key, value] : fields) { j.keys.push_back(key); j.items.push_back(value); }
return j;
}
std::string formatNumber(double v) {
if (!std::isfinite(v)) return "null";
char buf[64];
auto end = std::to_chars(buf, buf + sizeof buf, v).ptr; // shortest round-trip form
return std::string(buf, end);
}
void writeJson(std::ostream& out, const Json& j, const std::string& indent) {
switch (j.kind) {
case Json::Kind::Null: out << "null"; return;
case Json::Kind::Number: out << formatNumber(j.number); return;
case Json::Kind::Text: out << '"' << j.text << '"'; return;
default: break;
}
bool isObject = j.kind == Json::Kind::Object;
if (j.items.empty()) { out << (isObject ? "{}" : "[]"); return; }
std::string inner = indent + " ";
out << (isObject ? "{\n" : "[\n");
for (size_t i = 0; i < j.items.size(); ++i) {
out << inner;
if (isObject) out << '"' << j.keys[i] << "\": ";
writeJson(out, j.items[i], inner);
out << (i + 1 < j.items.size() ? ",\n" : "\n");
}
out << indent << (isObject ? '}' : ']');
}
// --- Lesson ---
Json lesson052() {
const double a = 0.30, b = 0.20, both = 0.08;
if (both < std::max(0.0, a + b - 1) || both > std::min(a, b)) {
throw std::invalid_argument("Impossible intersection");
}
return obj({
{"either", num(a + b - both)},
{"neither", num(1 - (a + b - both))},
{"onlyA", num(a - both)},
{"onlyB", num(b - both)},
});
}
int main() {
writeJson(std::cout, lesson052(), "");
std::cout << '\n';
}
No browser runner for C++ yet
Read the code here, then run it in your own toolchain or a ready-made cloud workspace.
Expected output
{
"either": 0.42,
"neither": 0.5800000000000001,
"onlyA": 0.21999999999999997,
"onlyB": 0.12000000000000001
}// Fintech Math Bootcamp · Lesson 052 of 120
// Probability Rules, Complements, Unions, and Intersections
// Module 06: Probability and Random Variables
//
// Scenario: Avoiding double-counting fraud rules
// Rule: P(A∪B)=P(A)+P(B)−P(A∩B)
//
// Try it: Why subtract the overlap exactly once?
//
// Lesson article: https://thefintechbuilder.com/financial-mathematics-statistics-and-data-foundations/probability-and-random-variables/probability-rules-complements-unions-and-intersections/
// Free course: https://courses.thefintechbuilder.com
// Synthetic teaching example, not financial advice or a production library.
// --- Minimal JSON value and printer: objects keep insertion order, 2-space indent. ---
#[allow(dead_code)]
enum Json {
Null,
Num(f64),
Str(String),
Arr(Vec<Json>),
Obj(Vec<(String, Json)>),
}
#[allow(dead_code)]
fn nums(values: &[f64]) -> Json {
Json::Arr(values.iter().map(|&v| Json::Num(v)).collect())
}
#[allow(dead_code)]
fn obj(fields: Vec<(&str, Json)>) -> Json {
Json::Obj(fields.into_iter().map(|(k, v)| (k.to_string(), v)).collect())
}
fn format_number(v: f64) -> String {
if !v.is_finite() {
return "null".to_string();
}
if v.fract() == 0.0 && v.abs() < 1e15 {
return format!("{}", v as i64);
}
format!("{:?}", v) // shortest round-trip form
}
impl Json {
fn render(&self, indent: &str) -> String {
let inner = format!("{} ", indent);
match self {
Json::Null => "null".to_string(),
Json::Num(v) => format_number(*v),
Json::Str(s) => format!("\"{}\"", s),
Json::Arr(items) if items.is_empty() => "[]".to_string(),
Json::Obj(fields) if fields.is_empty() => "{}".to_string(),
Json::Arr(items) => {
let lines: Vec<String> = items.iter().map(|v| format!("{}{}", inner, v.render(&inner))).collect();
format!("[\n{}\n{}]", lines.join(",\n"), indent)
}
Json::Obj(fields) => {
let lines: Vec<String> = fields
.iter()
.map(|(k, v)| format!("{}\"{}\": {}", inner, k, v.render(&inner)))
.collect();
format!("{{\n{}\n{}}}", lines.join(",\n"), indent)
}
}
}
}
// --- Lesson ---
fn lesson052() -> Result<Json, String> {
let (a, b, both): (f64, f64, f64) = (0.30, 0.20, 0.08);
if both < (a + b - 1.0).max(0.0) || both > a.min(b) {
return Err("Impossible intersection".to_string());
}
Ok(obj(vec![
("either", Json::Num(a + b - both)),
("neither", Json::Num(1.0 - (a + b - both))),
("onlyA", Json::Num(a - both)),
("onlyB", Json::Num(b - both)),
]))
}
fn main() {
match lesson052() {
Ok(result) => println!("{}", result.render("")),
Err(message) => {
eprintln!("{}", message);
std::process::exit(1);
}
}
}
No browser runner for Rust yet
Read the code here, then run it in your own toolchain or a ready-made cloud workspace.
Expected output
{
"either": 0.42,
"neither": 0.5800000000000001,
"onlyA": 0.21999999999999997,
"onlyB": 0.12000000000000001
}/**
* Fintech Math Bootcamp · Lesson 052 of 120
* Probability Rules, Complements, Unions, and Intersections
* Module 06: Probability and Random Variables
*
* Scenario: Avoiding double-counting fraud rules
* Rule: P(A∪B)=P(A)+P(B)−P(A∩B)
*
* Try it: Why subtract the overlap exactly once?
*
* Lesson article: https://thefintechbuilder.com/financial-mathematics-statistics-and-data-foundations/probability-and-random-variables/probability-rules-complements-unions-and-intersections/
* Free course: https://courses.thefintechbuilder.com
* Synthetic teaching example, not financial advice or a production library.
*/
using System;
using System.Text.Json;
var options = new JsonSerializerOptions { WriteIndented = true };
Console.WriteLine(JsonSerializer.Serialize(Lesson052(), options));
static object Lesson052()
{
double a = 0.30, b = 0.20, both = 0.08;
if (both < Math.Max(0, a + b - 1) || both > Math.Min(a, b))
throw new ArgumentException("Impossible intersection");
return new
{
either = a + b - both,
neither = 1 - (a + b - both),
onlyA = a - both,
onlyB = b - both,
};
}
No browser runner for C# yet
Read the code here, then run it in your own toolchain or a ready-made cloud workspace.
Expected output
{
"either": 0.42,
"neither": 0.5800000000000001,
"onlyA": 0.21999999999999997,
"onlyB": 0.12000000000000001
}Prefer your own machine? Every file is in the course repository · open it in Codespaces.
Lesson notes
The rule
P(A∪B)=P(A)+P(B)−P(A∩B)