AppliedMultiple choice

Your commute has a mean of 27 minutes and a standard deviation of 9. You must arrive on time $95\%$ of the time. Would you rather cut the mean by a minute or the standard deviation by a minute?

ACut the mean
BCut the standard deviation
CThey are equivalent
DNeither – only the mean affects punctuality

The worked solution is in Premium

The answer, the full working and the one idea to take away – for this and all 1,322 questions in the bank. Answer it in practice and your working is marked, with a known mistake named when you make one.

Start the 7-day free trial Practise it with Premium

Learn the method

Bet sizing, Kelly and risk of ruin

Reported in interviews at

Optiver, IMC Trading

Your commute has a mean of 27 minutes and a standard deviation of 9. You must arrive on time 95%95\%95% of the time. Would you rather cut the mean by a minute or the standard deviation by a minute?

More market making questions

Your commute has a mean of 27 minutes and a standard deviation of 9. You must arrive on time $95\%$ of the time. Would you rather cut the mean by a minute or the standard deviation by a minute?