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( ) = () + () − ( )

Event A = Factory burn = 0.45

Event B = Factory collapse = 0.25

Event C = Factory burn and collapse = 0.20

The probability that either event A or B will burn, assuming that, probability of
factory A burn + probability of factory B collapse – probability of A and B

happening. This means,
P (A or B) = P (A) + P (B) – P (A and B)

= 0.45 + 0.25 – (0.20)

= 0.70 – 0.20
= 0.50

Therefore, the probability that either factory burn or collapse will occur is 0.50.

4.3.2 Compound or Joint Probability Outcomes

Compound or joint probability is the probability of two events occurring
simultaneously. There are probability that an event will occur given that another

event also happens. In other words, it looks at the chance of one event occurring

that’s conditional on another event happening. Compound probability is depends
on whether the separate outcomes are dependent or independent.

Independent outcomes is a situation when the occurence of outcome A will not

affect the probability of outcome B. The probability of event A and event B

occurring is called a joint probability. As an example, your hair color is not related
to how well you do in the class. Another example is, there are fire at factories in Kok

Lanas (factory A) and Pengkalan Chepa (factory B). The probability as below.

Factory A (Kok Lanas) = 0.07
Factory B (Pengkalan Chepa) = 0.02

Probability (Factory A and B) = 0.07 x 0.02

= 0.0014
Thus, the probability that both factory will burn is unlikely.

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