Interview Question

Summer Internship - Quantitative Investment Strategies Interview(Student Candidate) New York, NY

Suppose that you have a fair coin. You start with $0. You

  win 1$ each time you get a head and loose $1 each time you get tails. Calculate the probability of getting $2 without getting below $0 at any time.
Answer

Interview Answer

2 Answers

2

Draw a tree to have an idea of how to compute the probability. The flips are all independent with each other.

Interview Candidate on Apr 10, 2012
0

1/3

Vipin Agrawal on Sep 2, 2013

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