JPMorgan Chase·Software Engineer·Technical Phone Screen
- You roll a fair six-sided die and win the dollar amount shown. What is the expected value of one play, and what is the most you should rationally pay to play?
- How does the expected value change if you can pay a fee to reroll after seeing your first result? What is the optimal strategy and the value of that option?
- If you roll two dice and win the sum, what is the expected value? Then what if you win the maximum of the two rolls instead of the sum?
“Pretty clean calculation once you remember expected value is just the probability-weighted average.”