Easy · Expected Value & Decision Theory · Numerical · ~4 min · #63
Accepting a Doubled Bet
Real interview · Susquehanna (SIG)
We bet 10 dollars on a football game. At half time I may raise the stake to 20 dollars. If I do, you can decline (and forfeit the original 10) or accept (and play for 20).
You know your exact chance of winning at that point. What is the minimum probability of winning at which you should accept?
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Worked solution
Give the problem an honest attempt first, then reveal the full explanation.
Reported in interviews
- Susquehanna (SIG)Glassdoor interview question
Candidate-reported and unverified; the firm may phrase it differently or no longer ask it. The wording here is our own paraphrase, and the solution was written and checked independently of any answers posted at the source.
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