Multiplication Rule for Conjunct

Multiplication Rule

P(AB)=P(A)P(B|A)

Sports Car Example

Say 10% of all new vehicles purchased from a particular dealer are sports cars. Of those, 30% have heated seats.
Consider randomly selecting someone who purchased a vehicle from this dealer. Define A as the the event where the individual selected a sports car, and B as the event of selecting heated seats. Then P(A)=.10 and P(B|A)=.30. The probability that they got a sports car with heated seats is:

P(AB)=P(A)P(B|A)=.10.30=.03

The rule can be used for multiple conjunctions:

P(ABC)=P(C|AB)P(AB)=P(C|AB)P(B|A)P(A)
Note