4.8: Chapter 4 Formulas

EC225: Research Methods and Statistics for Economics · LibreTexts

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    4.8: Chapter 4 Formulas

    Complement Rules: P(A) + P(AC) = 1

    P(A) = 1 – P(AC)

    P(AC) = 1 – P(A)

    Mutually Exclusive Events: P(A ∩ B) = 0
    Union Rule: P(A U B) = P(A) + P(B) – P(A ∩ B) Independent Events: P(A ∩ B) = P(A) ‧ P(B)
    Intersection Rule: P(A ∩ B) = P(A) ‧ P(B|A) Conditional Probability Rule: \(P(A \mid B)=\frac{P(A \cap B)}{P(B)}\)
    Fundamental Counting Rule: m1·m2···mn Factorial Rule: n! = n·(n – 1)·(n – 2)···3·2·1
    Combination Rule: \({ }_{\mathrm{n}} \mathrm{C}_{\mathrm{r}}=\frac{n !}{(r !(n-r) !)}\) Permutation Rule: \({ }_{\mathrm{n}} \mathrm{P}_{\mathrm{r}}=\frac{n !}{(n-r) !}\)

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