BlackRock–styleAnalyst InternSummer AnalystQuestion #18

If you have three rolls of a die, and after the first and second rolls you can choose either to accept your current roll or roll again, what is the optimal strategy to maximize your final roll, and what is the expected value of your outcome?

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State the assumptions, try a simple case, then work toward a general solution. Check the result and explain how it changes if an assumption changes.

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