The Last Record Low
What this preview is
The Last Record Low is a medium quant interview question on probability.
- Difficulty
- Medium
- Topic
- Probability
- Discipline
- Quant trading
- Language
- Agnostic
- Companies
- 0
What this record-low expected-value question tests
This is a medium-difficulty probability question that asks you to find the expected number of record lows in a shuffled deck. It is a classic test of whether you can apply linearity of expectation to decompose a counting problem, rather than trying to enumerate outcomes directly.
The key insight is recognizing that you can express the total count as a sum of indicator random variables—one for each position—and then compute the probability that each position holds a record low. This approach avoids the combinatorial explosion that comes from tracking the full joint distribution of records.
- Linearity of expectation and indicator decomposition
- Computing marginal probabilities under uniform random permutation
- Recognizing symmetries in random orderings
Related practice
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