Multiplication rule and the law of total probability
Two formulae handle most multi-stage problems.
Multiplication rule. Rearranging the conditional definition:
This is how to compute the probability of two events both happening when their occurrence is sequential or dependent.
Law of total probability. If and partition the sample space:
For a finer partition :
Worked example. A factory has two machines: Machine 1 makes 60% of items with 2% defective; Machine 2 makes 40% with 5% defective. Find .
Partition by machine.
Worked example (Bayes-style reverse). A defective item is selected. What's the probability it came from Machine 1?
(Although AA SL doesn't formally name Bayes' theorem, the calculation is exactly that.)
- — works for dependent events.
- Total probability: .
- 'Reverse' conditionals via the conditional definition.