Pairwise independence does not imply joint independence ($Z=X\oplus Y$)

Let $X,Y$ be independent fair bits, and let $Z=X\oplus Y$ be their exclusive or: $Z=1$ precisely when $X\ne Y$. The four possible triples are $000,011,101,110$, each with probability $1/4$. Each coordinate is a fair bit. Writing out all eight patterns givesEvery pair has all four cells $00,01,10,11$ with probability $1/4$:For $(X,Z)$, the four allowed triples project to $00,01,11,10$; for $(Y,Z)$ they project to $00,11,01,10$. Each projection lists each pair exactly once, proving pairwise independence. But $\mathbb{P}(X=0,Y=0,Z=0)=1/4$ differs from the product $1/8$, so the three are not independent random variables. Indeed, any two determine the third. A single coordinate reveals nothing about another, while two coordinates together reveal it completely.

The exclusive or example is the complementary-bit version of the two-toss exercise in Grinstead and Snell, Introduction to Probability, section 4.1, exercise 7, printed page 151. It is a compact reason to check the full product rule whenever a calculation uses three-way or higher events.