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DRW Questions 2

The document appears to be a series of math and statistics practice questions from an online challenge or exam. It includes questions about: 1. Expanding and collecting terms of a polynomial product. 2. Finding the probability of the difference between two dice rolls being exactly 4. 3. Computing the value of an option that pays $1 when an asset hits $97 for the first time. 4. Calculating the expected value of a linear combination of normal random variables given their dependence.
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0% found this document useful (0 votes)
2K views16 pages

DRW Questions 2

The document appears to be a series of math and statistics practice questions from an online challenge or exam. It includes questions about: 1. Expanding and collecting terms of a polynomial product. 2. Finding the probability of the difference between two dice rolls being exactly 4. 3. Computing the value of an option that pays $1 when an asset hits $97 for the first time. 4. Calculating the expected value of a linear combination of normal random variables given their dependence.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Question 1 of 16
Find the sum of the coefficients of the polynomial obtained after
expanding and collecting the terms of the product:

(1 - 3x + 3x2 )743 (1 + 3x - 3x2 )744


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Question 2 of 16
You roll two dice.
What is the probability the difference between the high and low
roll is exactly 4, to four decimal places?

1
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Question 3 of 16
Suppose there is an asset X whose current value is $90, and we
know its value in one year will be $100. There is an option that
pays $1 when X hits $97 for the first time.
Compute the value of this option to 4 decimal places.

SUB MIT ANSWER and proceed to next question



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Question 4 of 16
Let X and Y be two standard independent normal variables, i.e., X
~ N(0,1), Y ~ N(0,1), and p(X,Y) = -0.72.
Calculate E[3X+YIX-Y =1]

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Question 5 of 16
(Part 1 of 2) - Students from two schools participated in a
tournament. Each contestant played each other contestant once.
There were ten times as many students from school A but they
were able to win only 4.5 times as many points as the students
from school B.
a) How many students from school B participated?


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Question 6 of 16
(Part 2 of 2) - Students from two schools participated in a
tournament. Each contestant played each other contestant once.
There were ten times as many students from school A but they
were able to win only 4.5 times as many points as the students
from school B.
b) How many points did they win?


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Question 7 of 16
Suppose the current price of a stock is $100. The price has
probability 70% of increasing to $110 and probability 30 °/o of
declining to $90 in one year. Assume the risk-free rate is 5%.
Calculate the value of a call option struck at $100 that matures in
one year to four decimal places.

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Time Remaining: 32 Q1inutes

Question 8 of 16
Suppose X, and Y are independent Brownian Motions that at time
0 are both equal to 1. Consider the first time, T, the Y process hits
0.
What is the probability that X(T) > 0?

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Time Remaining: 32 minutes

Question 9 of 16
A player A tosses 100 coins. B tosses 99 coins. B wins if he has
at least as many heads as A.
What is the probability that B wins?

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Time Remaining: 32 minutes

Question 10 of 16
The number 123456789(10)(11)(12)(13)(14) is written in the base
15, that is the number is equal (in the base 10) to
14 + 13*15 + 12*152 + 11*15 3 + ... + 2*15 12 + 15 13
Without using computers, calculators or other computation
devices, calculate the remainder upon dividing this number by 7.


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Question 11 of 16
There is a 6-faced fair die.
What is the expected number of throws before getting three same
numbers in a row?

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Question 12 of 16
The population of an endangered species at year N is denoted by

Assume

Po== 100

P updates by the rule

Pn+l == 2 * Pn

with probability 1/2

Pn+l == 0

with probability 1/2.

What is the expected time until the species dies out?

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1 1 1

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Question 13 of 16
A family has two children. The genders of the first-born and
second-born are independent (with boy and girl equally likely).
The seasons in which the children were born in are independent,
with all 4 seasons (winter, spring, summer, fall) equally likely.
Find the probability to 4 decimal places that both children are
girls, given that at least one of the two is a girl who was born in
winter.

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Time Remaining: 31 minutes

Question 14 of 16
Without using computers, calculators or other computation
devices, find the integer part of X(i.e. [X]) where Xis given by the
following sum:

1,000,000 1
X == L
i=4 vi
3/:f

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Question 15 of 16
(Part 1 of 2) - There are 3 random variables X, Y and Z. The
correlation between X and Y is 0.8 and correlation between X and
Z is 0.5.
Calculate the minimum correlation between Y and Z, to four
decimal places.

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Question 16 of 16
(Part 2 of 2) - There are 3 random variables X, Y and Z. The
correlation between X and Y is 0.8 and correlation between X and
Z is 0.5.
Calculate the maximum correlation between Y and Z, to four
decimal places.

SUBMIT ANSWER (Last question! Answering this will complete the ◄


challenge.)

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