Simulation LaboratoryUnions, overlaps and conditions

Environment 03 · Probability decision lab

Who is affected, and what should we do?

Define two events, control their overlap, and translate the resulting probabilities into an operational decision.

FrameExploreInterpretDecide

Explore the evidence

Late orders and rainy periods

Event AEvent BBoth
UnionEvery case in A, B, or both.
ConditionRestrict attention to event B, then ask how many are also A.
DependenceCompare observed overlap with P(A)P(B).

Interpret

Overall probability and conditional risk answer different questions

Make the decision

Which group should receive priority?

Decision brief

See the mathematics and assumptions

P(A ∪ B) = P(A) + P(B) − P(A ∩ B). P(A | B) = P(A ∩ B) ÷ P(B). If A and B are independent, P(A ∩ B) = P(A)P(B). The lift P(A | B) ÷ P(A) shows how much conditioning on B changes the baseline probability of A.