1. Interview Question Workshop Financial Engineering Club 2/25/2015

2. Probability  Very common in trading and quant interviews. Appear in software interviews too.  Highly recommend taking STAT 400, Math 461, or a similar course as early as possible!  Very common in trading and quant interviews. Appear in software interviews too.  Highly recommend taking STAT 400, Math 461, or a similar course as early as possible!

3. Probability – Expected Value

5. Probability – Conditional Probability

6.  Example: Russian Roulette Problem  You are playing Russian Roulette on a gun that can hold 6 bullets. There are two bullets in the chamber side by side, and the other 4 slots are empty. The person before you pulls the trigger and the gun does not go off. It’s your turn, should you spin the chamber or take the next shot?  Answer: Do not spin the chamber  No spin P(bullet|no bullet previously) = P(bullet and no bullet previously) / P(no bullet previously) = (1/6) / (4 / 6) = 1/4  Spinning P(bullet) = 1/3  Example: Russian Roulette Problem  You are playing Russian Roulette on a gun that can hold 6 bullets. There are two bullets in the chamber side by side, and the other 4 slots are empty. The person before you pulls the trigger and the gun does not go off. It’s your turn, should you spin the chamber or take the next shot?  Answer: Do not spin the chamber  No spin P(bullet|no bullet previously) = P(bullet and no bullet previously) / P(no bullet previously) = (1/6) / (4 / 6) = 1/4  Spinning P(bullet) = 1/3

7. Brainteaser  Often a test of how creatively you can think.  They can vary from quantitative to highly open ended.  Books: All books mentioned here feature brainteasers.  Often a test of how creatively you can think.  They can vary from quantitative to highly open ended.  Books: All books mentioned here feature brainteasers.

8. Coding  Trading and especially quant interview will also ask coding questions.  Vary from general knowledge about languages, to algorithms questions, to design discussions.  Books: Recommend “Cracking the Coding Interview”  Trading and especially quant interview will also ask coding questions.  Vary from general knowledge about languages, to algorithms questions, to design discussions.  Books: Recommend “Cracking the Coding Interview”

9. Mental Math  Sometimes you cannot use pen/paper  Some companies are known to give numerical tests  We recommend you practice to get faster with mental math.  Practice  http://www.calculationrankings.com/  Sometimes you cannot use pen/paper  Some companies are known to give numerical tests  We recommend you practice to get faster with mental math.  Practice  http://www.calculationrankings.com/

10. Books  Heard on the Street  A Practical Guide to Quantitative Finance Interviews  Cracking the Coding Interview  How to Ace the Brainteaser Interview  Heard on the Street  A Practical Guide to Quantitative Finance Interviews  Cracking the Coding Interview  How to Ace the Brainteaser Interview

11. Competition  10 questions  20 minutes  Top score win’s $20 Chipotle gift cards  10 questions  20 minutes  Top score win’s $20 Chipotle gift cards