Two students A and B appear for an exam. Probability that A passes is 0.05, B passes is 0.10, and both pass is 0.02. Find probability that neither passes.
Show Hint
Whenever a question asks for the probability that none of the given events occur, first find the probability that at least one event occurs and then use
\[
P(\text{None})
=
1-P(\text{At least one}).
\]
Concept:
This problem is based on the addition rule of probability and the complement rule.
For any two events \(A\) and \(B\),
\[
P(A\cup B)=P(A)+P(B)-P(A\cap B).
\]
The probability that neither event occurs is
\[
P(\text{Neither})
=
1-P(A\cup B).
\]
Step 1: Write the given probabilities.
\[
P(A)=0.05,
\qquad
P(B)=0.10,
\qquad
P(A\cap B)=0.02.
\]
Step 2: Find the probability that at least one student passes.
Using
\[
P(A\cup B)=P(A)+P(B)-P(A\cap B),
\]
we get
\[
P(A\cup B)
=
0.05+0.10-0.02.
\]
\[
P(A\cup B)
=
0.13.
\]
Step 3: Find the probability that neither student passes.
\[
P(\text{Neither})
=
1-P(A\cup B).
\]
\[
P(\text{Neither})
=
1-0.13.
\]
\[
P(\text{Neither})
=
0.87.
\]
Conclusion:
\[
\boxed{0.87}
\]
Hence, the probability that neither student passes is \(0.87\).