MBA 22-24

Venn Diagram OPTS501 IMD

Suresh Venkatraman

• A Venn Diagram represents the sample space for the event(s).

• For example, this Venn Diagram illustrates the sample space for
events A and B

A B

Sunday, September 4, 2022 OPTS501IMD_M3_L4 How to Depict Probability 1 of 5

 MBA 22-24

Venn Diagram OPTS501 IMD

Suresh Venkatraman

• The union of two events (A Ս B) is the event consisting of all

those outcomes, which are included either in A or in B
• It includes those outcomes which are in both A and B.
• In this depiction, A U B is not the universal set,
• therefore A & B are not collectively exhaustive.

A B

Sunday, September 4, 2022 OPTS501IMD_M3_L4 How to Depict Probability 2 of 5

 MBA 22-24

Venn Diagram OPTS501 IMD

Suresh Venkatraman

• The intersection of two events (A ∩ B) consists of all those

outcomes which are included in A and included in B.

A∩B

A B

Sunday, September 4, 2022 OPTS501IMD_M3_L4 How to Depict Probability 3 of 5

 MBA 22-24

Venn Diagram OPTS501 IMD

Suresh Venkatraman

• The complement of event A (i.e., Ac) is the event consisting

of all outcomes in the sample space S that are not in A.

A Ac

Sunday, September 4, 2022 OPTS501IMD_M3_L4 How to Depict Probability 4 of 5

 MBA 22-24

Working with Venn diagrams OPTS501 IMD

Suresh Venkatraman

Two defining properties of a probability:

1. The probability of any event A is a value between 0 and 1.
0 ≤ P(A) ≤ 1.
2. The sum of the probabilities of any list of mutually exclusive
and exhaustive events equals 1.
Σ p(Xi) = 1
Empirical probability using relative frequency:
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑜𝑢𝑡𝑐𝑜𝑚𝑒𝑠 𝑖𝑛 𝐴
𝑃 𝐴 =
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑜𝑢𝑡𝑐𝑜𝑚𝑒𝑠 𝑖𝑛 𝑆

Sunday, September 4, 2022 OPTS501IMD_M3_L4 How to Depict Probability 5 of 5