2.13. 244. 25. 2.16. Section 2.5 Some Rules of Probability 39 FIGURE 2.7: Venn diagram for Exercises 2.10, 2.12, and 2.13. Duplicate the method of proof used in Exercise 2.12 to show that P(AUBUCUD) = P(A) + P(B) + P(C) + P(D) — P(ANB) — P(ANC) ~ P(AND) + P(BNC)— PBN) = P(CND) + P(ANBNC) + P(ANBND) + PIANC AD)+ P(BACND) — P(ANBNCND) (Hint: With reference to the Venn diagram of Figure 2.7, divide each of the eight regions into two parts, designating one to be inside D and the other outside D and letting a, b, c, d, e, f, g, h. i, j, kl, m,n, 0, and p be the probabilities associated with the resulting 16 regions.) Prove by induction that P(E,U E2U---U En) S )> P(E) t for any finite sequence of events Ey, Ep, ..., and Ey. ‘The odds that an event will occur are given by the ratio of the probability that the event will occur to the probability that it will not occur, provided neither probability is zero. Odds are usually quoted in terms of positive integers having no common factor. Show that if the odds are A to B that an event will occur, its probability is a ate Subjective probabilities may be determined by exposing persons to risk-taking situations and finding the odds at which they would consider it fair to bet on the outcome. The odds are then converted into probabilities by means of the formula of Exercise 2.15, For instance, if a person feels that 3 to 2 are fair odds that a business venture will succeed (or that it would be fair to bet $30 against p=