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Sig·Software Engineer·Technical Phone Screen·Junior

Junior
May 2026

Summary

Interviewed for a quant role at SIG and got a probability question that looks simple but will trip you up if you're rusty on distributions. Pretty focused technical screen, just the one problem as far as I can tell.

Questions Asked (1)

Q1

A bakery has unlimited croissants but only 2 muffins. Each of 5 customers independently buys a muffin with probability 0.2 or a croissant with probability 0.8. What is the probability that the bakery doesn't run out of muffins?

Algorithms & Data Structures
Author's notes

You need P(X <= 2) where X is Binomial(5, 0.2).

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AI HintsAI Generated

Suggested Approach

Model the number of muffin buyers as a binomial random variable with n=5 and p=0.2. The bakery does not run out if at most 2 customers buy muffins, so compute P(X ≤ 2) using the binomial CDF or by summing individual probabilities.

Pro tip: After computing the probability, briefly mention that this is a binomial distribution problem and that the complement (running out) would be P(X ≥ 3). This shows you understand the underlying model and can think about edge cases.

1. Identify the random variable

Define X as the number of customers who buy a muffin. Recognize that X follows a binomial distribution with parameters n=5 and p=0.2.

2. Determine the condition for not running out

The bakery has only 2 muffins, so it does not run out if X ≤ 2. The event of running out is X ≥ 3.

3. Compute the probability

Calculate P(X ≤ 2) using the binomial formula: sum_{k=0}^{2} C(5,k) * (0.2)^k * (0.8)^{5-k}. Alternatively, use the complement: 1 - P(X ≥ 3).

4. Verify and present the result

Perform the arithmetic carefully and state the final probability. Optionally, mention that the expected number of muffin buyers is 1, which is less than 2, so the probability should be high.

Key Points to Mention

  • Binomial distribution with n=5 and p=0.2
  • Independence of customer choices
  • Complement rule: P(not run out) = 1 - P(run out)
  • Calculation of individual probabilities: P(X=0), P(X=1), P(X=2)
  • Final probability value (approximately 0.94208)
  • Interpretation: high chance of not running out despite limited muffins

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.