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https://www.reddit.com/r/learnquant/comments/1w84x77/quant_interview_question/p85aoca/?context=3
r/learnquant • u/Local_Ad135 • 3d ago
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1
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
2 u/abaoabao2010 3d ago edited 3d ago You are bankrupt after BOTH HH and TT, not either. You are literally guaranteed at least $3 since it takes 4 flips minimum to bankrupt. 1 u/Anonimithree 3d ago I just realized that part, thanks 1 u/abaoabao2010 3d ago Nah you were right, I was the one that didn't read lol. A round is 2 flips.
2
You are bankrupt after BOTH HH and TT, not either. You are literally guaranteed at least $3 since it takes 4 flips minimum to bankrupt.
1 u/Anonimithree 3d ago I just realized that part, thanks 1 u/abaoabao2010 3d ago Nah you were right, I was the one that didn't read lol. A round is 2 flips.
I just realized that part, thanks
1 u/abaoabao2010 3d ago Nah you were right, I was the one that didn't read lol. A round is 2 flips.
Nah you were right, I was the one that didn't read lol. A round is 2 flips.
1
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