Junior Trader Interview Questions

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The fair coin has a probability of heads equal to the probability of tails equal to one-half. The biased coin has a probability of heads equal to two-thirds, so probability of tails is one-third. Now you place both these coins on a table. You randomly select one of the two coins, toss it three times, and get two heads. Then you take the other coin, toss it once, get one head. Which of these two coins is more likely to be biased?
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Junior Shift Trader

Interviewed at Squarepoint Capital

3.9
Aug 26, 2025

The fair coin has a probability of heads equal to the probability of tails equal to one-half. The biased coin has a probability of heads equal to two-thirds, so probability of tails is one-third. Now you place both these coins on a table. You randomly select one of the two coins, toss it three times, and get two heads. Then you take the other coin, toss it once, get one head. Which of these two coins is more likely to be biased?

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