Madison Tyler Holdings Interview Question
Web:
www.madisontyler.com
|
HQ:
Beverly Hills, CA
Overview |
| |
Salaries |
| |
Reviews |
| |
Interviews |
| |
Photos |
| |
Jobs |
| |
|
27 Interview Reviews |
Back to all Madison Tyler Holdings Interview Questions & Reviews
Interview questions and reviews posted anonymously by interview candidates
Interview Question for Trading Analyst at Madison Tyler Holdings:
Aug 17, 2011
We play a game. You flip two coins, if you get both heads I give you $1. If you get both tails you flip again. If you get one of each, I pay you nothing. What's the expected value of this game?
| Tags: | coins, coin, expected value, coin flips See more , See less 8 |
Add Tags
[?]
See more for this Madison Tyler Holdings Trading Analyst Interview
Helpful Question?
Yes |
No
Inappropriate?
Answers & Comments (5)
Oct 18, 2011
E=0.25x1+0.5x0+0.25xE
0.75xE=0.25
E=0.33
0.75xE=0.25
E=0.33
Helpful Answer?
Yes |
No
Inappropriate?
Oct 24, 2011
interviewer told me .667 is correct
Helpful Answer?
Yes |
No
Inappropriate?
Oct 28, 2011
HT and TH add up to 1/2 of the probability with zero payout. HH is 1/4 probability with $1 payout. TT results in a "reset" so we can disregard. After we normalize the probabilities, we get: E[payout]= (1/3)*$1 + (2/3)*$0 = $0.33
Helpful Answer?
Yes |
No
Inappropriate?
Dec 7, 2011
You can also see it a geometric series.
By writing E=0.25x1+0.5x0+0.25xE, Kerzane could as well have written
E?0.25x1 + 0.5x0 + 0.25x(0.25x1 + 0.5x0 + 0.25x(0.25x1 + 0.5x0 + 0.25x(....)))
This is quite simply the geometric sum: (n-> infinity) E=0.25 + 0.25^2 + 0.25^3....0.25^n
which is equal to 0.25/(1-0.25) = 0.25/0.75 = 1/3 or 0.333
By writing E=0.25x1+0.5x0+0.25xE, Kerzane could as well have written
E?0.25x1 + 0.5x0 + 0.25x(0.25x1 + 0.5x0 + 0.25x(0.25x1 + 0.5x0 + 0.25x(....)))
This is quite simply the geometric sum: (n-> infinity) E=0.25 + 0.25^2 + 0.25^3....0.25^n
which is equal to 0.25/(1-0.25) = 0.25/0.75 = 1/3 or 0.333
Helpful Answer?
Yes |
No
Inappropriate?
To comment on this
question,
Sign In with Facebook or
Sign Up
You might also be interested in: Interview Questions, Trading Analyst Interview Questions, Madison Tyler Holdings Interview
0 of 3 people found this helpful
by Interview Candidate:
You are twice as likely to get one of each (H-T or T-H) versus getting both heads
answer:
(2/3)($1) + (1/3)(0) = 66.7 cents