We have P(A) = 1/4, P(B) = 1/2
and P(A and B) = P(A ∩ B) = 1/8
(i) P(A or B) = P(A ∪ B) = P(A)+P(B) - P(A ∩ B)
= 1/4 + 1/2 - 1/8
\(=\frac{2+4-1}{8}\) = 5/8
(ii) P(not A and not B) = P(A' ∩ B')
= P((A ∪ B)') (∵ (A ∪ B)' = A' ∩ B')
= 1 - P(A ∪ B) (∵ P(A') = 1 - P(A))
= 1 - 5/8
= 3/8.