The book and current industry trends categorize the "must-know" material into several distinct technical pillars:
While it provides solutions, it is a prep guide rather than a textbook, assuming a base level of knowledge in financial engineering, as noted in the G-Research researcher assessment guide Overall Impression 150 Most Frequently Asked Questions on Quant Interviews 150 Most Frequently Asked Questions On Quant Interviews
How do you prevent a model from overfitting to noise? The book and current industry trends categorize the
| # | Question | Difficulty | Key Idea | |---|----------|------------|-----------| | 1 | You flip two fair coins. Given that at least one is heads, what is the probability both are heads? | ★ | Conditional probability: 1/3 | | 2 | Draw one card from a deck. What is the probability it is a king or a heart? | ★ | Inclusion-exclusion: 4/52 + 13/52 – 1/52 = 16/52 | | 3 | Roll a fair die. What is the expected value? | ★ | (1+2+3+4+5+6)/6 = 3.5 | | 4 | You have two dice. What is the probability the sum is 7? | ★ | 6/36 = 1/6 | | 5 | A family has two children. At least one is a boy. Probability both are boys? | ★ | 1/3 | | 6 | You flip a coin until you get heads. Expected number of flips? | ★ | Geometric: 2 | | 7 | Draw two cards without replacement. Probability both are aces? | ★ | (4/52) (3/51) | | 8 | You roll a die. What is the variance of the outcome? | ★★ | E[X²] – E[X]² = 91/6 – 3.5² ≈ 2.92 | | 9 | You flip a fair coin 10 times. Probability of exactly 5 heads? | ★ | C(10,5)/2¹⁰ | | 10 | There are 3 red and 3 blue balls in an urn. Draw two without replacement. Probability same color? | ★ | (3/6 2/5) 2 = 2/5 | | 11 | You have two coins: one fair, one double-headed. Pick one at random, flip, get heads. Probability it’s the double-headed? | ★★ | Bayes: 2/3 | | 12 | What is the expected number of rolls of a die to see all 6 faces? | ★★ | Coupon collector: 6 (1 + 1/2 + … + 1/6) ≈ 14.7 | | 13 | You and I take turns flipping a coin. First to get heads wins. You go first. Your chance to win? | ★★ | 2/3 | | 14 | Two points are chosen uniformly on [0,1]. Expected distance between them? | ★★ | 1/3 | | 15 | Random variable X ~ N(0,1). What is E[|X|]? | ★★ | √(2/π) | | 16 | You have a stick of length 1. Break at random point. Expected length of shorter piece? | ★★ | 1/4 | | 17 | 100 people randomly assigned seats on a plane. First person sits randomly. Probability last person gets own seat? | ★★★ | 1/2 (symmetry) | | 18 | You flip a fair coin until you see HH. Expected flips? | ★★★ | 6 (use Markov chains) | | 19 | You have n biased coins with p_i. Randomly pick one, flip. Probability heads? | ★ | Average of p_i | | 20 | Roll two dice. Expected maximum? | ★★ | ≈ 4.472 | | 21 | Draw from U[0,1] until sum exceeds 1. Expected number of draws? | ★★★ | e ≈ 2.718 | | 22 | What is the probability that a random chord in a circle is longer than the radius? | ★★ | 1/2 (depends on definition) | | 23 | You have 5 red and 5 blue balls. Draw without replacement. Probability last ball is red? | ★ | 1/2 (symmetry) | | 24 | You roll a die and win $1 if prime, lose $1 if composite, 0 otherwise. Expected profit? | ★ | (3 wins, 2 losses, 1 zero) → 1/6 | | 25 | Random permutation of n numbers. Probability that 1 is before 2? | ★ | 1/2 | | 26 | What is the probability of getting a flush (5 same suit) in poker? | ★★ | (4*C(13,5))/C(52,5) | | 27 | You have two envelopes with money, one double the other. You open one, see $100. Switch? | ★★ | Paradox: Expected value same | | 28 | You play a game: roll a die, get that many dollars. You can roll again once. Strategy? | ★★ | Roll again if ≤ 3 | | 29 | Random walk on integers starting at 0. Probability of reaching +1 before –n? | ★★ | 1/(n+1) | | 30 | You have 3 doors, one car. Pick one, host opens a goat door. Switch? | ★ | Switch gives 2/3 chance | | 31 | Random point in a unit square. Expected distance to nearest edge? | ★★ | 1/6 | | 32 | What is P(X < Y) for independent exponentials with rates λ, μ? | ★ | λ/(λ+μ) | | 33 | You flip a coin until you get HT. Expected flips? | ★★★ | 4 | | 34 | Two players shoot basketball with accuracy p. Alternate. First to make wins. Advantage to first? | ★★ | 1/(2-p) | | 35 | Roll a die. If you get 6 you win $6, else roll again. Expected value? | ★★ | 3.5 if stop otherwise? | | ★ | Conditional probability: 1/3 | |