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The outer derivative $g'$ must be evaluated at the output of the inner function, i.e., at $h(x)$, not at the original input $x$. This reflects the sequential nature of composition: the change in $x$ affects $h$, and the sensitivity of $g$ depends on the current value of $h$.

Conditions: Computing derivative of $g(h(x))$; Applying chain rule $g'(h(x))h'(x)$

The outer derivative $g'$ must be evaluated at the output of the inner function, i.e., at $h(x)$, not at the original input $x$. This reflects the sequential nature of composition: the change in $x$ affects $h$, and the sensitivity of $g$ depends on the current value of $h$.

Conditions: Computing derivative of $g(h(x))$; Applying chain rule $g'(h(x))h'(x)$