(1) State the inclusion-exclusion principle:

P[AB]=P[A]+P[B]P[AB]

(2) Derive a contradiction:

Given P[A]=0.5 and P[B]=0.7, we have P[A]+P[B]=1.2.

Since P[AB]1, it follows that P[AB]0.2.

Therefore P[AB]=0.001 is impossible.