SERVING THE QUANTITATIVE FINANCE COMMUNITY

 
User avatar
henktijms
Topic Author
Posts: 33
Joined: December 25th, 2010, 2:50 pm

How to choose your numbers?

July 11th, 2018, 5:18 pm

On each of 100 blank cards you have to put one of the numbers 1, 2, 3, 4 or 5. If this has been done, one of the cards is randomly drawn.You have to pay in dollars the same amount as the number on the card drawn. How to put  your numbers on the cards in order to minimize the  maximum  of  $E(X_1)\ldots, E(X_5)$, where the random variable $X_k=1$ if the number on the  drawn card is $k$ and $X_k=0$ otherwise?
 
User avatar
ppauper
Posts: 67450
Joined: November 15th, 2001, 1:29 pm

Re: How to choose your numbers?

July 12th, 2018, 2:26 pm

there's too many paths to consider ([$]X_{1}=1,2,3,4,5[$] same for [$]X_{2}[$] etc)
I'll just write 1 on every card and owe $1
ABOUT WILMOTT

PW by JB

Wilmott.com has been "Serving the Quantitative Finance Community" since 2001. Continued...


JOBS BOARD

JOBS BOARD

Looking for a quant job, risk, algo trading,...? Browse jobs here...