Here's the latest question sent in by site visitors who have attended equities interviews at investment banks. This question is asked in trading interviews. The answer has been suggested by the person who submitted the question (and is not being advocated by us). If you disagree with the answer, or have any brilliant alternative responses, please express your opinion in the comments box below.
THE QUESTION: You walk into the casino and head for the roulette table. When you arrive, someone tells you that the last 5 numbers that have popped up on the roulette table are the number 18. What will your strategy at the roulette table be?
THE SUGGESTED ANSWER:
The cliched answer would be that it doesn't matter - the odds of any number being hit are equal on a roulette table.
The really foolish would say that we should not bet on 18 since it has already popped up 5 times so the odds of it popping up again are lower.
Both are WRONG or not ideal.
The ideal answer is: "I would be on 18 again."
Firstly because it doesn't make a difference since theoretically all numbers have equal odds. But PRACTICALLY, there might be something that just went wrong with the roulette table so you might as well bet on the side of bias just in case there is something wrong with it (and it's weighting it down towards 18!).