Compute ruin probability with bold betting
Company: SIG (Susquehanna)
Role: Data Scientist
Category: Statistics & Math
Difficulty: medium
Interview Round: Online Assessment
You start with 3 tokens and aim to reach 5 tokens before running out. Each turn you bet as many tokens as possible but not more than needed to reach 5, and you win each bet independently with probability 3/5. What is the probability you reach 5 tokens before ruin?
Overview: This question evaluates understanding of probability theory and stochastic processes, focusing on ruin probabilities under a bold betting strategy with state-dependent wagers.