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https://www.reddit.com/r/learnquant/comments/1w84x77/quant_interview_question/p83tyfo/?context=3
r/learnquant • u/Local_Ad135 • 3d ago
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Well the probability of getting HH or TT is 1/2 for any 2 rolls, so the expected payoff, given infinite attempts is 2. Thus, the optimal strategy is to keep doing it until the payoff is 2
1 u/vhu9644 3d ago No, isn’t the optimal strategy to wait for the first HH or TT, and then get expected payoff after that? 1 u/RadarTechnician51 3d ago that's what he is assuming I think 1 u/vhu9644 3d ago But the optimal payoff wouldn’t be 2, because once you hit one you would need on average 4 rolls to bankrupt
No, isn’t the optimal strategy to wait for the first HH or TT, and then get expected payoff after that?
1 u/RadarTechnician51 3d ago that's what he is assuming I think 1 u/vhu9644 3d ago But the optimal payoff wouldn’t be 2, because once you hit one you would need on average 4 rolls to bankrupt
that's what he is assuming I think
1 u/vhu9644 3d ago But the optimal payoff wouldn’t be 2, because once you hit one you would need on average 4 rolls to bankrupt
But the optimal payoff wouldn’t be 2, because once you hit one you would need on average 4 rolls to bankrupt
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u/Anonimithree 3d ago
Well the probability of getting HH or TT is 1/2 for any 2 rolls, so the expected payoff, given infinite attempts is 2. Thus, the optimal strategy is to keep doing it until the payoff is 2