Hedge fund interview question

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  • เผยแพร่เมื่อ 27 ธ.ค. 2024

ความคิดเห็น • 64

  • @randomxnp
    @randomxnp 21 ชั่วโมงที่ผ่านมา +14

    After the first set there are two outcomes: if the same player wins it is won in two sets. If the other player wins then it is won in three sets. So if equally skilled the chance is 50:50.
    However the chances are the first winner is better, which means that player is more likely to win the next match.

  • @LuisSergioCarneiro
    @LuisSergioCarneiro 21 ชั่วโมงที่ผ่านมา +26

    I think the solution might be simpler. The probability of finishing in 2 sets is equal to the probability of the winner of the second set being the same player that won the first one. If sets are independent and players are equally likely to win each set, that probability would be 50%. However, if one player has already won one set, we might think this was due to him being the best one of them, so I would bet he will win the second set as well. Therefore I would bet on a 2-set match.

    • @Steve.M
      @Steve.M 21 ชั่วโมงที่ผ่านมา +5

      I agree. The question, as stated, doesn’t require expressions for all the different probabilities. Start by considering two players that are exactly equally matched, and it’s 50/50 whether the match will go to three sets. Then suppose that one player is slightly better than the other. It must then be slightly more likely than 50/50 that that player will win the first two sets.

    • @blahsomethingclever
      @blahsomethingclever 20 ชั่วโมงที่ผ่านมา +1

      My conclusion also, came to that almost instantly. Players aren't evenly matched.

    • @anandgautam3057
      @anandgautam3057 20 ชั่วโมงที่ผ่านมา

      Came to the comments to say exactly this, but am already late :) I would love to see an edit from Presh as these nice way of understanding solutions are amazing.

  • @victorkaplansky
    @victorkaplansky 21 ชั่วโมงที่ผ่านมา +8

    It is obvious that Pr(3 sets) = 1 - Pr(2 sets). This observation could allow you to shorten your calculations. Actually I've done it in my mind, so this is good inteview question.

  • @Antoine.Comeau.Racing
    @Antoine.Comeau.Racing 21 ชั่วโมงที่ผ่านมา +5

    The probability that the winner of game 1 wins game 2 is 50% if they are equally good.
    If they are not equally good, it is more than 50%.
    Since it isn’t garantee that they are equally good, finishing in 2 is more likely.

  • @xnick_uy
    @xnick_uy 20 ชั่วโมงที่ผ่านมา +1

    There's an intuitive way of interpreting the answer: provided either of the players has better chances of winning a set (e.g. one of them is a better player), it is more probable to have two consecutive wins than to have a win and a lose in the first two sets.
    I'm surprised Presh didn't mention that the probability of having to play the third set is also the probability of not ending the match after just two sets. In equations, this redas as
    P(W,L,W) + P(W,L,L) + P(L,W,W) + P(L,W,L) = P(W,L)+P(L,W)
    which also could be re-stated as a relation between condional probailities.

  • @saltdestroyer
    @saltdestroyer 21 ชั่วโมงที่ผ่านมา +1

    9:19 WW? Woodrow Wilson? Willy Wonka? Walter White?
    "Ha, you got me!"

  • @Nico-ni7hd
    @Nico-ni7hd 21 ชั่วโมงที่ผ่านมา +14

    are those bots commenting??

    • @MasterOFSuperFunny
      @MasterOFSuperFunny 21 ชั่วโมงที่ผ่านมา

      I definitely see a pattern in their comments...

    • @Wyvernnnn
      @Wyvernnnn 21 ชั่วโมงที่ผ่านมา +1

      Everyone here is a bot except you

    • @reinisliepins6177
      @reinisliepins6177 21 ชั่วโมงที่ผ่านมา +2

      Yes, all of them advertising corn.

    • @rogerkearns8094
      @rogerkearns8094 21 ชั่วโมงที่ผ่านมา +1

      Apparently, but what the point of it is, I don't know.

    • @erictrobin
      @erictrobin 20 ชั่วโมงที่ผ่านมา

      The first comments are usually from bot accounts.
      "Your video is so inspirational! Love your style!"

  • @LilOak
    @LilOak 21 ชั่วโมงที่ผ่านมา +2

    How is there more options for a 3 set victory and only 2 options for a 2 set victory, but the 2 set win is more probable?

    • @stopshulking748
      @stopshulking748 21 ชั่วโมงที่ผ่านมา

      Because the options for the 3 set victories are each (and as a sum) less likely than the options for 2 set victories

    • @sleepytiger-r6k
      @sleepytiger-r6k 20 ชั่วโมงที่ผ่านมา

      Basically if p(W) = 0.5, i.e. both players have same probability of winning, then 2set vs 3set are the same. otherwise, it's more likely to end in a 2 set. (WW or LL is more likely than WL/LW)

  • @musiccollections7850
    @musiccollections7850 21 ชั่วโมงที่ผ่านมา +1

    You don’t need third match, because third match guarantees victory for the winner with 100% probability, when played. In actually you only need to calculate probabilities up to two matches, also pay attention to the question, if the match end in two matches or 3 matches, not based on players side

    • @musiccollections7850
      @musiccollections7850 20 ชั่วโมงที่ผ่านมา

      But when summing probabilities of 3 matches is the same of probabilities of 2 matches with one win 1 in loss, WL and LW

  • @nicholasharvey1232
    @nicholasharvey1232 20 ชั่วโมงที่ผ่านมา

    If we call the players A and B, there are four possible combinations of A wins and B wins: AA, BB, AB, and BA. The first two end the match after two sets, while the second two force a third set. Assuming we don't know if A is a much stronger player than B or vice versa, one would assume that we have an equal chance of seeing a two-set match or a three-set one.
    Mathematically, this question isn't so much different from the socks-in-a-drawer riddle. Assuming the number of socks of each color is equal (but also infinite, such that pulling out a sock of one color does not deplete the supply of socks of that same color!), you are equally likely to get a matching pair with either 2 socks or 3-- your first two socks have a 50/50 chance of matching, and if they don't, your third sock must match one of them: there are not three different sock colors, just as there cannot be three different winners in a three-set tennis match between only two players.

  • @user60521123
    @user60521123 21 ชั่วโมงที่ผ่านมา +1

    Without knowing how the players rank against each other, 2 sets would be more likely than 3 to produce a match win. There are 3 possible outcomes after 2 sets: 2 are one of the players winning both sets and 1 where each player wins a set. It’s twice as likely that one player will win both sets (2/3) than each wining one (1/3).

    • @feedbackzaloop
      @feedbackzaloop 20 ชั่วโมงที่ผ่านมา

      You can't sum up probabilities. Winning two sets of three in a row doesn't happen 2/3 of the time.

  • @stalhw
    @stalhw 21 ชั่วโมงที่ผ่านมา +1

    Easier thinking is if both player are equally good, then its coin toss, so 2or3 game is equal, but if one player was so good, they would always win in 2. So if one player is better than the other then there is more chances it ends in 2 games.

  • @andrewbaptist3781
    @andrewbaptist3781 20 ชั่วโมงที่ผ่านมา

    The thing that stood out to me is that bets are typically not even odds. Given that the bookie would have done this calculation or looked at historical data and you would have an approximately even chance of winning by betting for either 2 or 3 sets. That said I still liked the video and the approach!

  • @austinnar4494
    @austinnar4494 20 ชั่วโมงที่ผ่านมา

    Assuming each set is independent (which mind you may not be a valid assumption in a sports setting) the probability of finishing in 2 sets is at least 50%. For equally matched opponents, it is exactly 50%; as the skill gap widens, the probability goes up, reaching as high as 100% if one player will always beat another. Since we do not know the skill gap of the players, and we know that the match will conclude in 2 sets at least half of the time, we conclude that betting on 2 sets is best.

  • @oliverracz2686
    @oliverracz2686 20 ชั่วโมงที่ผ่านมา

    Not only do I not know the answer, I don't even know what the question is.

  • @romain.guillaume
    @romain.guillaume 20 ชั่วโมงที่ผ่านมา

    Without doing math here is my reasoning. No matter the result of the first set, we want to know if the second set will be the same winner as the second basically. If both players are equal, it should be a 50/50 chance. Otherwise, the best player should be more likely to win two sets in a row. In both cases, two sets is better, and works even better when players’ levels are uneven.
    After the vid: well that was it, yaay

  • @osliverpool
    @osliverpool 20 ชั่วโมงที่ผ่านมา

    Without doing all the maths... If two players are of equal ability and have a 50/50 chance of winning a single set, then after set 1 there's a 50/50 chance of it going to 3 sets (whoever wins set 1). But if one player is stronger and has a greater than 50% chance of winning an individual set, then they have a greater than 50% chance of winning the first 2 sets. So for equally matched players, the chances of 2 or 3 sets is 50/50. But with unequal players, the chance of a 2-set match is greater. So always bet on 2 sets.

  • @timturner7609
    @timturner7609 20 ชั่วโมงที่ผ่านมา

    Kinda crazy. Is it because most of the 2 win matches are "big fish from small ponds" that just get absolutely bodied by the "real big fish" at the nationals?
    Like if my mommy got matched against the siren Williams or whatever

  • @as37g10
    @as37g10 21 ชั่วโมงที่ผ่านมา

    Another easy solution:
    Imagine it was an equally fair match, then p=0.5. whoever wins set 1 has a 0.5 probability of winning set 2, so there is a 50% chance of 2 sets, 50% of 3 sets.
    Intuitively we can tell that if the probability of player 1 winning was above 0.5, then they are more likely to win in 2 sets.
    To prove this, the prob of 2 sets is WW + LL: (0.5+e)^2 +(0.5-e)^2 which is 0.5 +e^2, therefore greater than a half. Here e is the additional probability above 0.5

  • @Tbop3
    @Tbop3 21 ชั่วโมงที่ผ่านมา

    So what's the resulting p from the database you used?

  • @StevenDietrich-k2w
    @StevenDietrich-k2w 21 ชั่วโมงที่ผ่านมา

    Impressed with all of Presh's math, but 1 second worth of common sense says that if one player is superior to the other, then he/she is most likely to win both sets. Skill doesn't dissipate in this example. If the players are exactly even, then the outcome is random, and the odds of two sets is exactly the same odds as the match going to 3 sets.

  • @ThePartyKnife
    @ThePartyKnife 21 ชั่วโมงที่ผ่านมา

    Can someone please explain why the equation for losing both sets is different than the one for winning both sets? I don't get it... xD

    • @feedbackzaloop
      @feedbackzaloop 20 ชั่วโมงที่ผ่านมา

      Because win has probability p and loss probability 1-p. Hence p^2 vs (1-p)^2
      Or you could say that loss of first player is the win of the second with the probability - say - k. And get p^2 vs k^2. But again, k=1-p

  • @athek7081
    @athek7081 21 ชั่วโมงที่ผ่านมา

    You have to remember that the best player will win 2 games. Odds are, if there was only one game then the best player will win.

  • @halflbobeef
    @halflbobeef 21 ชั่วโมงที่ผ่านมา

    The thing I jumped to first (considering it’s an interview question, so usually the answer is less important than the outside the box reasoning), I just thought that it’s more likely that one of the players will be better than the other, so the games will be weighted for the better person to win each set, thus 2 sets is more likely than 3. The best chance for 3 is if they were both very equal, which in a random game is not probable.
    Nice to know my gut pans out in the maths. 😄

  • @PivDen-jv3th
    @PivDen-jv3th 21 ชั่วโมงที่ผ่านมา

    We have two graphs about this probabilities like that
    * *
    * *
    * *
    * *
    * *
    * *
    ** **
    * *
    *** ***
    ******
    *** ***
    * *
    ** **
    * *
    * *
    * *
    * *
    * *
    * *

  • @RobertBlair
    @RobertBlair 20 ชั่วโมงที่ผ่านมา

    Can we gather data from the field, and measure how many matches go 2-0, and how many go 2-1? And maybe then compare how well predictions match reality.

  • @Ostap1974
    @Ostap1974 20 ชั่วโมงที่ผ่านมา

    Pr(3 sets) = WL | LW.

  • @OwlSaver
    @OwlSaver 21 ชั่วโมงที่ผ่านมา

    This helps me a lot. But i still get confused over when i should count possible outcomes vs use the probability of an outcome.

  • @kevinclive7856
    @kevinclive7856 21 ชั่วโมงที่ผ่านมา

    As someone preparing for hedge funds interview.... I'd have said 2 sets without making any calculations hoping they dont ask for explanations

    • @kevinclive7856
      @kevinclive7856 21 ชั่วโมงที่ผ่านมา

      I haven't watched the full video yet I hope 2 is the answer

  • @andrewmakar2035
    @andrewmakar2035 20 ชั่วโมงที่ผ่านมา

    How significant is having first serve? Since the players are arbitrarily named, let's say that player 1 served first. So player 1's win percentage in the first game is not only based on skill, but also influenced by serving first. If serving first conveys a significant advantage, relative to the skills of the players, then 3 may be the proper bet. It all depends on how significant that advantage is.

  • @Alienn-ò_ó
    @Alienn-ò_ó 20 ชั่วโมงที่ผ่านมา

    I don't do betting.
    anyways nice video!

  • @jovarsmm567
    @jovarsmm567 21 ชั่วโมงที่ผ่านมา +1

    Is this a joke

  • @andrewwebb2141
    @andrewwebb2141 20 ชั่วโมงที่ผ่านมา

    Switch doors 🤷‍♂️

  • @ss_here_50
    @ss_here_50 21 ชั่วโมงที่ผ่านมา

    binomial probability

  • @seasong7655
    @seasong7655 21 ชั่วโมงที่ผ่านมา

    Maybe i should work for a hedge fund, that was easy

  • @MariaWalling-q2e
    @MariaWalling-q2e 21 ชั่วโมงที่ผ่านมา

    Thank you for your efforts! Your videos are always so interesting and professional. Keep it up!🏵🏈⚾️

  • @shylittleguy
    @shylittleguy 21 ชั่วโมงที่ผ่านมา

    idk i guess 2

  • @hardyworld
    @hardyworld 21 ชั่วโมงที่ผ่านมา

    I can't wrap my head around this one for some reason. A game 3 is only played if the winner of Game 2 is different than the winner of Game 1. If the probability of either player winning is equal (50%) then the probability of a Game 3 being played is 50%. With equal odds for either player winning each match, the probability of the match ending after Game 2 should be equal to the probability of the match going to 3 games. The reason real outcomes don't match this is because matchups are not equal and the player who wins Game 1 is likely the better player that day and has much higher odds than 50% to win any game in the matchup. I don't understand how the odds of a 2 game match could be statistically higher than a 3 game match in the case of even odds for each game (I ran a quick simulation 1000 times to confirm my thoughts before I posted).

  • @andrewwalsh2755
    @andrewwalsh2755 20 ชั่วโมงที่ผ่านมา

    What is the probability of a player winning 2 sets in, say, 100 sets played?
    Answer: probability very High.
    Win 2 sets in 99 sets played?
    Answer: high, but slightly lower...
    Win 2 sets in 98, 97, 96, etc sets played?
    Answer: probability is reducing...
    Win 2 sets in 3 sets played?
    Answer: probability P
    Win 2 sets in 2 sets played?
    Answer: a little less than probability P
    So: A 2 set win is more likely in 3 sets than 2 sets!

  • @NaHBrO733
    @NaHBrO733 20 ชั่วโมงที่ผ่านมา

    The calculation is so unnecessary
    1. the match will either end in 2 sets or 3 sets, just see if p^2+(1-p)^2 is larger than 0.5
    2p^2-2p+1 = 2(p-1/2)^2+1/2 >= 1/2, so bet on 2 sets
    or you can use inequality sqrt(a^2+b^2/2) >= a+b/2

  • @maverick627uk
    @maverick627uk 21 ชั่วโมงที่ผ่านมา +3

    This is a ridiculous interview question unless a detailed explanation of working out the maths is required. 50/50 to simply get lucky and guess the answer.

    • @jonathangoliath91
      @jonathangoliath91 21 ชั่วโมงที่ผ่านมา +1

      interview question is to show thinking process. hedge funds probably wouldn't require this level of maths, but this level of problem solving to at least structure the probability space is reasonable.

    • @simoncirkel6348
      @simoncirkel6348 21 ชั่วโมงที่ผ่านมา +2

      You can logically think what would be the right answer. After one match, the person who won is more likely to have more skill and win again. Unless they both have exactly the same chance of winning, the outcome favours the match ending after 2 games.

    • @smoath
      @smoath 21 ชั่วโมงที่ผ่านมา

      ​@@simoncirkel6348no, because players have an average that they sometimes play better than, and sometimes play worse than. Daniel Kahneman does a brilliant job of explaining this in his book: thinking fast thinking slow.

    • @jonathangoliath91
      @jonathangoliath91 20 ชั่วโมงที่ผ่านมา

      @@simoncirkel6348 agree, I would do common sense method first and sketch a graph before doing the maths.

  • @qc1okay
    @qc1okay 21 ชั่วโมงที่ผ่านมา

    Nope, once again, MindYourDecisions doesn't know tennis and thus uses a completely wrong method. Given a random tennis match, always bet on 2 sets, since the vast majority of 3-set matches end in 2 sets. That's literally all there is to it. The VAST majority of tennis matches end in 2, so given no other info about the match, always bet on 2.

  • @SophiaRoberts-y6h
    @SophiaRoberts-y6h 21 ชั่วโมงที่ผ่านมา

    Your videos are always so insightful and intelligent. Thank you for your contribution to the education and development of the community!🐞🏄‍🦎

  • @EmilyKennedy-q7h
    @EmilyKennedy-q7h 21 ชั่วโมงที่ผ่านมา

    Every video is a real treat! Thank you for your creativity and professionalism.🏆❗️🏄

  • @TinaElliotts
    @TinaElliotts 21 ชั่วโมงที่ผ่านมา

    Your ideas are always so creative and interesting. Thank you for your hard work!🏄‍⛹️🌃

  • @EmilyTorbert-c1v
    @EmilyTorbert-c1v 21 ชั่วโมงที่ผ่านมา

    Every time I admire your ability to create quality content. Keep making us happy with your videos!🙊🧢🟫