Step 1: Define the events. - \( A \) represents the event of obtaining exactly two heads. The set of possible outcomes for \( A \) is \( \{HHT, HTH, THH\} \), therefore \( P(A) = \frac{3}{8} \). - \( B \) represents the event of obtaining at most two tails. The set of possible outcomes for \( B \) includes all outcomes except \( HHH \), thus \( P(B) = \frac{7}{8} \).
Step 2: Apply the formula for the union of events.
The formula for the union of two events is:
\[P(A \cup B) = P(A) + P(B) - P(A \cap B)\]
The intersection of events \( A \) and \( B \), \( P(A \cap B) \), occurs when both conditions are met. The only outcome satisfying both is \( \{HHT, HTH, THH\} \), so \( P(A \cap B) = \frac{3}{8} \).
\[P(A \cup B) = \frac{3}{8} + \frac{7}{8} - \frac{3}{8} = \frac{7}{8}\]
The calculated probability is \( \frac{7}{8} \). Therefore, the final answer is \( \frac{7}{8} \).