- There are three different views on probability calculation: 1. analytic view; 2. frequentist view; 3. subjective probability view. The first two views are most important and elaborated on this chapter.
- Two important rules for probability calculation are:
1. The additive rule: Given a set of mutually exclusive events, the probability of the occurrence of one event or another is equal to the sum of their separate probabilities.
2. The multiplicative rule: The probability of the joint occurrence of two or more independent events is the product of their individual probabilities.