# Questions tagged [probability]

A probability expresses quantitatively how likely an event is to occur. We often encounter probabilities as conditional probabilities which express how likely an event is to occur in light of certain (given) information.

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### Interview question: Betting on the outcome of a soccer match

Question from https://www.quantguide.io/questions/soccer-bets. You are betting on the outcome of a soccer match. Team Quant has 2:1 odds (you get \$3 back if you win, \$2 profit) and Team Guide has 3:...
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### A quant job interview question about (toy) futures

On Monday, you receive prices for each day of the week: $X_{1,1}, \ldots, X_{1,5}$. On Tuesday, you receive prices for Tuesday, Wednesday, Thursday, and Friday: $X_{2,2}, \ldots, X_{2,5}$. On ...
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### Radon–Nikodym derivative of $\alpha$-measure

I'm struggling a bit to understand how the Radon–Nikodym derivative is computed in pag.3 of this paper written by Mark Joshi titled "THE USE OF POWER NUMERAIRES IN OPTION PRICING". Given a ...
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### Constant cancellation model for volume of LOB queues

I have been reading Jean-Philippe Bouchaud's book on stochastic models of LOB queues in Chapter 5, which starts with the simplest model. In this model, market/limit/cancel orders are assumed to be of ...
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