what is compound probability 
compound probability looks to determine the likelihood of two independent events occurring compound probability multiplies the probability of the first event by the probability of the second event the most common example is a coin flipped twice and finding if the second result will be the same as the first the bottom lineconditional probability examines the likelihood of an event occurring based on the likelihood of a preceding event occurring the second event is dependent on the first event for example we might want to know the probability that some stock will go up if the index for its sector is on the rise the conditional probability calculation takes into account both how likely the first event is the stock rising in price as well as how much the two events overlap 