Worksheet # 2: Basic Probability
We have the following information about the borrowers:
1. 10 borrowers had at least 10 years experience, had an advanced degree and borrowed at least
$3 million.
2. 11 had an advanced degree and borrowed at least $3 million.
3. 30 had an advanced degree.
4. 17 had at least 10 years experience and had an advanced degree.
5. 3 had at least 10 years experience, borrowed at least $3 million and did not have any
advanced degrees.
6. 2 had less than 10 years experience, had no advanced degrees and borrowed at least $3
million.
7. 8 had less than 10 years experience, had no advanced degrees and borrowed less than $3
million.
8. 16 had at least 10 years experience and borrowed less than $3 million.
We will define our events as follows:
A: the event the borrower has at least 10 years experience
B: the event the borrower has an advanced degree
C: the event the borrower borrowed at least $3 million
# Description Set Notation Region
1A∩B∩CR(5)
2B∩CR(5) & R(6)
3BR(2), R(3), R(5) & R(6)
4A∩BR(2) & R(5)
5A∩BC∩CR(4)
6AC∩BC∩CR(7)
7AC∩BC∩CCR(8)
8A∩CCR(1) & R(2)
We will use a Venn diagram to summarize all of the above information by counting all the various
regions of our sample space. There are 8 regions total as shown below:
1
