Easy · Expected Value & Decision Theory · Numerical · ~5 min · #64
Even Faces Pay Double
Real interview · Susquehanna (SIG)
A die roll pays twice the face value if the face is even and the face value if it is odd. A single roll is worth 5.5 dollars.
Now you may, after seeing the first roll, choose to roll once more, in which case you are paid only on the second roll. What should you charge for this version?
Hints · 0 of 2 shown
Worked solution
Give the problem an honest attempt first, then reveal the full explanation.
Reported in interviews
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.
Related questions
Concepts
Backward inductionPricing a game
Relevant for
Quant TraderDesk Quant