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Lunchtime Links: The killer interview question from Susquehanna International Group; how to make 1.1k a day in insurance

An especially difficult interview question from Susquehanna International Group is doing the rounds today. Paul Kedrosky has posted it on his Infectious Greed blog and is soliciting responses. It goes like this:

Five guys, all of different ages, enter a bar and take a seat at a round table. What is the probability that they are seated in ascending order of age?

If you think you know the answer, please leave it in our comments box below.

Separately, Insurance Daily has a story about rich people working in the Insurance industry.

It says actuarial professionals working on Solvency II are now earning more than 1k a day and typically receiving four offers of work each. This is nearly double what they earned last year and could be good for a while: the implementation deadline for Solvency II is December 2012.

The EU is thinking of introducing a Tobin tax to bolster its finances. (Financial Times)

Some people on the Bank of England's financial policy committee wanted to put a cap on bankers' bonuses, but they were talked out of it. (Financial Times)

Goldman Sachs is increasing its Brazilian workforce by 20% this year. (Bloomberg)

Nomura has hired 3 FIG bankers and Richard Snow, former head of investor relations and ex-head of M&A at Vodafone as it rebuilds its M&A team. (Financial News)

Paunchy bald investment banker who 'hardly radiates power' could be next CEO of Goldman Sachs. (Reuters)

Macquarie wants to hire for debt capital markets in Asia. (Bloomberg)

Nepotism may be an issue in the UAE. (Bloomberg)

Icap hired 200 staff into its IT division last year and plans further aggressive recruitment in the next nine months. (Financial News)

ICAP currently has one job in London - for a Russian speaking voice broker. (ICAP)

"The banking industry is an ideal target for. Psychopaths." (Financial Times)

Study finds web trolls get a feeling of abandon similar to drunks. (News.com.au)

How to wear socially acceptable shorts in the office. (MSNBC)

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AUTHOReFinancialCareers UK Insider Comment
  • an
    anonymous
    18 November 2012

    The correct answer is 1/12:

    The denominator is 5! which =120. The numerator is 5*2 = 10.

    The numerator is 10 because there are five ways the group can sit in order of age clockwise, and 5 ways the group can sit in order of age counter-clockwise.

  • da
    darth sidious
    7 July 2011

    1/24

    5 persons, so there are 5! = 120 permutations (not circular)
    since if were not circular, there is only 1 correct permutation, then it become 1/120
    but because it's circular, there are 5 * (1/120) = 1/24

  • M.
    M. A. D.
    29 June 2011

    If the first guy goes to take a seat, he has a 1/5 chance of sitting in 'the right place', the second 1/4, the third 1/3, the fourth 1/2 and the fifth 1. So you would think the probability is all of these multiplied (1/120) but think about how there are 5 seperate permutations of 'the right order'. The youngest guy could be sitting at 12 o'clock, or in any of the 5 seats to begin with. So, you would think that the answer is 5/120, but the ascending order could be clockwise or counterclockwise so you must multiply 5/120 by 2.

    So the final answer is 1/12

  • Al
    Alex
    28 June 2011

    1/12=5*2/120. There are 120=5! potential combinations in total. However, since it does not matter which specific seat is taken, we have to multiply this by 5 and, since clockwise/counterclockwise does not matter, multiply by 2.

  • Jo
    John
    28 June 2011

    P( first 3 sit in ascending order) = 1
    P(4th person sits in correct position) = 1/3
    P(5th person sits in correct position) = 1/4

    1/3 * 1/4 = 1/12

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