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This has to do with the union of events. If events A and B are in the set S, then the union of A and B is the set of outcomes in A or B. This means that either event A or event B, or both, can occur.

P(A or B) = P(A) + P(B) - P(A and B)

**P(A and B) is subtracted, since by taking P(A) + P(B), their intersection, P(A and B), has already been included. In other words, if you did not subtract it, you would be including their intersection twice. Draw a Venn Diagram to visualize.

If A and B can only happen separately, i.e., they are independent events and thus P(A and B) = 0, then,

P(A or B) = P(A) + P(B) - P(A and B) = P(A) + P(B) - 0 = P(A) + P(B)

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