Probability tree
A probability tree is a branching diagram mapping sequential events, with conditional probabilities on each branch and outcomes found by multiplying along a path.
See it move
Machine 1 makes 60% of parts with a 5% defect rate, so its path probability is 0.60 × 0.05, or 0.03. Machine 2 makes 40% with a 10% defect rate, giving 0.40 × 0.10, or 0.04. Adding both paths, the overall probability a part is defective is 0.03 + 0.04, or 7%.
The formula
Variables
- First-stage event (first branch)
- Second-stage event (next branch)
- Conditional probability of B given A
Gives the probability of a single path through a probability tree by multiplying along its branches.
Variables
- The i-th first-stage branch
- The outcome of interest
- Conditional probability of X given branch A_i
Gives the overall probability of an outcome by summing across every first-stage branch that can lead to it.
Check yourself
A factory buys parts from two suppliers: Supplier A provides 70% of parts with a 2% defect rate, and Supplier B provides the remaining 30% with a 6% defect rate. What is the probability that a randomly chosen part is defective?