SIG (Susquehanna)–styleTraderGraduate Quant TraderQuestion #111
What is the probability of getting the sequence HHT before HTH when flipping a fair coin repeatedly?
Free worked solution · Quant Blueprint
2/3.
- Track the longest suffix that is a prefix of either target: empty, H, HH or HT. Let their probabilities of eventually winning with HHT be p₀,pH,pHH,pHT.
- T from empty stays empty, so p₀ = pH. From H, a head moves to HH and a tail to HT, so pH = (pHH+pHT)/2.
- From HH, a tail completes HHT and a head leaves suffix HH. Thus pHH = (1+pHH)/2 = 1.
- From HT, a head completes HTH and loses; a tail resets to empty. Hence pHT = p₀/2. Substitute: p₀ = (1+p₀/2)/2, yielding p₀ = 2/3.
Common mistake
Equal pattern lengths and equal single-window probabilities do not make their first-occurrence probabilities equal. Overlapping prefixes determine the race.
Follow-up
The reverse race has probability P(HTH before HHT) = 1/3. Neither pattern can complete simultaneously, and eventually one completes with probability one.
Original educational explanation for this practice question. Reviewed . Firm-style practice; the label describes the collection’s preparation context.
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