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here’s the ultimate shortcut to these kinds of problems:
when in doubt, try something with e or, in this case, 1/e.
this strategy also applies to other games and works more often than you’d think.
18.6.2025
Quant interview question:
You press a button that gives your randomly uniformly distributed number between $0 and $100K
Each time you press, you have two choices:
1. Stop and take this amount of money
2. Try again
You can try 10 times total.
When do you stop?
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