Home > Topics > Business Statistics – II > Multiplication Theorem of Probability

Multiplication Theorem of Probability ✖️

The Multiplication Theorem helps calculate the probability of simultaneous occurrence of two events. It answers: "What is the probability of obtaining A AND B?"

Symbolically: P(A ∩ B) or P(AB).


Case 1: Independent Events 🔓

If outcome of A does not affect B.

P(A ∩ B) = P(A) * P(B)

Example: Independent Events 🔓

Tossing a coin AND Rolling a die.

  • A (Head): 1/2.
  • B (Six): 1/6.
  • P(Head AND Six) = 1/2 * 1/6 = 1/12.

Case 2: Dependent Events (Conditional) 🔒

If outcome of A affects B (e.g., drawing without replacement). We use Conditional Probability.

P(A ∩ B) = P(A) * P(B | A)

(Read P(B|A) as "Probability of B given that A has happened")

Example: Dependent Events 🔒

Bag: 3 Red, 2 Blue. Draw 2 cards without replacement.

  • Task: Draw Red first, then Blue.
  • P(Red): 3/5. (Now 4 balls left).
  • P(Blue | Red): 2/4.
  • P(Both) = 3/5 * 2/4 = 6/20 = 3/10.

Comparison 📊

Loading comparison…

Loading quiz…