I'm reading Nonparametric Bayesian Statistics Part I: some classical results.
In page 14 and section 3.2.1 I can't understand why the length of the stick after the second break is:
$$(1-Y_1)(1-Y_2)$$
and not
$$(1-Y_1-Y_2)$$
How is the extra term $$Y_1Y_2$$ part of the remaining piece of the original length 1 stick?
That's because the authors are considering the variables $Y_k$ to be in the standard range $[0,1]$.
So $Y_1$ is the length of the first cut and $1-Y_1$ the remaining part, out of which a part having a ratio $Y_2$ of $1-Y_1$ is cut, i.e. with length $Y_2(1-Y_1), and $(1-Y_1)(1-Y_2)$ is the length remaining ...