Summary: Simple extensions of the Stern-Gerlach experiment reduce the predictions about quantum measurement to their essence.
The usual reason for considering the Stern-Gerlach experiment is that it shows experimentally that angular momentum is quantised, and that particles can have intrinsic angular momentum which is an integer multiple of . An inhomogeneous magnetic field deflects particles by an amount proportional to the component of their magnetic moment parallel to the field; when a beam of atoms passes through they follow only a few discrete paths ( where is their total angular momentum quantum number) rather than, as classically predicted, a continuum of paths (corresponding to a magnetic moment which can be at any angle relative to the field).
For our purposes though a Stern-Gerlach device is a quick and easily-visualised way of making measurements of quantities (spin components) for which the corresponding operators do not commute, and thereby testing the postulates concerned with measurement. We restrict ourselves to spin-; all we need to know is that if we write to indicate a particle with its spin up along the direction , and for spin down, then the two orthogonal states span the space for any , and if and are perpendicular.
In the figure above we see an unpolarised beam entering a Stern-Gerlach device with its field oriented in the -direction. If we intercept only the upper or lower exiting beam, we have a pure spin-up or spin-down state.
Here we see a sequence of Stern-Gerlach devices with their fields oriented in either the - or -direction. The numbers give the fraction of the original unpolarised beam which reaches this point. The sequence of two -devices in a row illustrates reproducibility. The final -device is the really crucial one. Do you understand why half of the particles end up spin-down, even though we initially picked the beam?