Exam P · Probability Fundamentals · Free Lesson

Set Functions, Sample Spaces, and Axioms of Probability

Free SOA Exam P (Probability) lesson in Probability Fundamentals. 25 min read, ~3,740 words.

A batch of 500 wafers has 80 with scratches, 65 with misalignment, and 30 with both. The fraction with at least one defect is not but . Forget the overlap and you overcount by 26%.

A sample space is the set of all possible outcomes of a random experiment. Every subset of is an event.

You need four set operations:

For two events, the Venn diagram has four mutually exclusive regions:

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Exam shortcut

When you see two or three named events with given probabilities, draw the Venn diagram immediately, fill the innermost intersection first, subtract outward, and verify all regions sum to 1. "PIE" for inclusion-exclusion: Plus singles, Intersection pairs subtracted, Everything-together added back. "Break the bar, flip the sign" for De Morgan's: complementing across a union flips it to an intersection (and vice versa).

The full lesson (about 3,740 words, 25 min read) adds 5 worked examples, all 9 common mistakes, a self-check, free in the app.

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