• C++ Programming for Financial Engineering
    Highly recommended by thousands of MFE students. Covers essential C++ topics with applications to financial engineering. Learn more Join!
    Python for Finance with Intro to Data Science
    Gain practical understanding of Python to read, understand, and write professional Python code for your first day on the job. Learn more Join!
    An Intuition-Based Options Primer for FE
    Ideal for entry level positions interviews and graduate studies, specializing in options trading arbitrage and options valuation models. Learn more Join!

Probability Puzzle

Joined
8/18/10
Messages
153
Points
38
qvzU4.jpg
 
The answer itself defines the correct answer: None is the correct answer if you randomly pick from all the 4 answers.

1 in 4 chance is 25% but because 25% is repeated two times there is a 50% chance that that answer will be picked from the selection. But if you get 25% then the answer is wrong, and if you choose 50% then your answer will be wrong because there is only a 25% chance of choosing 50%. And if you choose 0% then your answer is wrong as well. If 0% was the correct answer then the chances would again be 25% making 0% - the wrong answer. The answer is such: the random selection is to be made out of only the first 2 answers and not of all 4. It does not state that you have to choose randomly among all 4 answers.
By only randomly selecting either A or B you have reduced it to a 50% chance of getting the correct answer and so B(50%) is the correct answer.
 
It cannot be B, because you have 1/4=25% chance to pick B so 50% cannot be the answer. Cannot be A or D neither, because there's a 50% chance of picking them, hence 25% would be wrong. Thus, as Tsotne put it, there's no good answer.
 
The funny thing is, that after a bit of reasoning, I come to the conclusion that this is not a multiple choice question. If you chop up the question into two parts you'll see this.

Edit: Pretty sure it should be zero, as:
P(.25)=.5
P(.5)=.25
P(.6)=.25

Even if C is 0 then:
P(0)=.25

Therefore the chance is 0. In addition, the chance is zero for every C.

Edit2: I just googled the question, seems to be a lot of debate on this. Apparently no-one really seems to agree.
 
Assuming the correct answer is one of the three possible answer (25%, 50%, 60%)....which are all equally probable at being the correct answer:

If you choose an answer at random, you have prob. of 2/4 = 0.5 of choosing 25%, 1/4 of choosing 50%, 1/4 of choosing 60%.

So the probability of having the right answer being chosen at random is: 1/2*1/3 + 1/4*1/3 + 1/4*1/3 = 1/3
 
This reminds me to the self-reference(ish) Gödel incompleteness theorem.

Hahaha...I would have thought something like this was from "Alice in Wonderland"...

I can see the hookah-smoking caterpillar asking this question to Alice.
Alice: "But what is the question?"
Caterpillar: "That is the question."
Alice: "I'm afraid I don't understand. What is the question?"
Caterpillar: "I've told you, young lady, that is the question."
March Hare: "I don't have time for this nonsense. I'm late, I'm late! She'll have my head if I'm late..."
 
Back
Top