Nneetquant
Get started

Which desk books the larger day

MediumRandom VariablesStatistics~4m

Two independent desks post daily P&Ls that are normal. Desk A has mean 5050k and standard deviation 1010k; Desk B has mean 4848k and standard deviation 66k. On a given day, what is the probability Desk A's P&L exceeds Desk B's? Use Φ(0.1715)≈0.5681\Phi(0.1715)\approx 0.5681. Give a decimal to four places.

Show hints (2)+
  1. Look at D=A−BD=A-B and ask P(D>0)P(D>0).
  2. Means subtract; variances add for independent normals.

Answer

Reveal answer →

0.5681 (± 0.002)

Create a free account to see the full worked solution and track your progress.

Create a free account

Interview format: Hedge Fund Quant, Numerical Reasoning Tests

Related questions