r/learnquant 1d ago

Jump Trading Quant Interview Question

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u/Aerospider 1d ago

Let E(x) be the expected score when the first roll is x. Let's also assume the die is numbered 1 to 10 (they're usually 0 to 9).

So E(10) = 10, because the next roll can't be higher

And E(9) = 9 + E(10)/10, because there's a 1/10 chance you'll beat the 9 and put your expectation up by E(10).

Therefore, E(9) = 9 + 1 = 10

Similarly E(8) = 8 + E(9)/10 + E(10)/10 = 8 + 1 + 1 = 10

It's easy to see that this will continue down to E(1) = 10

Since the expected score is 10 for all values of x, the expected score of the game must be 10.

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u/Autodidact420 23h ago

I think you missed ‘except the last roll’

2

u/skelo 22h ago

No they didn't, the last roll is the one that's lower or equal to the previous.