Murex Interview Question: You have two games. Game A Yo... | Glassdoor

Interview Question

Financial Consultant Interview Dublin, Co. Dublin (Ireland)

You have two games. Game A You toss one coin. Heads you win

  $1, Tails you lose $1. Game B: You toss two coins. Two Heads you win $2, two Tails you lose $2, a combination of both and you win or loss nothing. What is the Expected Value, Variance and Standard Deviation of both games? Which game would you prefer to play and why?
Answer

Interview Answer

1 Answer

0

Same result, Game A odds to win/loose are 50/50 obviously, Game B odds are 25% Heads 25% Tail 25% Tail/Head 25% Head/Tail = 25% win 25%loose 50% nothing. If you play an infinite games the result will be the same, but Game A will give you faster results than B.

peter on Feb 24, 2017

Add Answers or Comments

To comment on this, Sign In or Sign Up.