Compute probability in urn with green returns

Quick Overview

Compute probability in urn with green returns evaluates statistical assumptions, formulas, estimation strategy, uncertainty, edge cases, and interpretation in a realistic interview setting. A strong answer states assumptions, handles edge cases, explains trade-offs, and shows how to validate the result clearly.

Compute probability in urn with green returns

Company: Virtu Financial

Role: Data Scientist

Category: Statistics & Math

Difficulty: medium

Interview Round: Technical Screen

An urn contains 5 red, 5 blue, and 5 green balls. You repeatedly draw one ball uniformly at random. If the ball is green, immediately return it to the urn and continue; if it is red or blue, keep it. Stop once you are holding three balls (i.e., three non-green balls). 1) What is the probability that at least two of the three held balls are red? 2) Now suppose the urn instead has 10 red, 5 blue, and 5 green balls (same process). First give an intuitive estimate, then compute the exact probability that at least two of the three held balls are red.

Quick Answer: Compute probability in urn with green returns evaluates statistical assumptions, formulas, estimation strategy, uncertainty, edge cases, and interpretation in a realistic interview setting. A strong answer states assumptions, handles edge cases, explains trade-offs, and shows how to validate the result clearly.

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Aug 1, 2025, 12:00 AM
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Compute probability in urn with green returns

Urn Sampling with Replacement for Greens Only

You have an urn with colored balls. You repeatedly draw one ball uniformly at random:

  • If the ball is green, immediately return it to the urn and continue.
  • If the ball is red or blue, keep it out of the urn.
  • Stop once you are holding three balls (i.e., three non-green balls).

This means greens only affect how long it takes, not the colors of the three held balls.

Questions

  1. Case A: The urn contains 5 red, 5 blue, and 5 green balls. What is the probability that at least two of the three held balls are red?
  2. Case B: The urn contains 10 red, 5 blue, and 5 green balls. First give an intuitive estimate, then compute the exact probability that at least two of the three held balls are red.

Clarifying Questions to Ask Guidance

  • Clarify the random variables, distributional assumptions, independence assumptions, and desired output.
  • Show enough derivation for the interviewer to follow the reasoning.
  • Explain how you would validate the result with simulation or sensitivity checks.

What a Strong Answer Covers Guidance

  • A correct setup with definitions, formulas, and boundary conditions.
  • A step-by-step derivation or estimation plan.
  • Interpretation of the result, including uncertainty and practical limitations.
  • Checks for assumptions, edge cases, and numerical stability.

Follow-up Questions Guidance

  • How would the result change if the assumptions were relaxed?
  • Can you verify the answer with a simulation?
  • What is the most likely source of estimation error?
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