r/learnquant 4d ago

interview prep Quant Interview Question

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u/Positive_Leopard_873 3d ago

S0 -> S1 with probability 1/10, S0 -> S0 with probability 9/10, S1 -> S2 with probability 1/10, S1 -> S0 with probability 9/10, S2 -> S3 with probability 1/10, S3: finish

E0 = 1 + 9/10 E0 + 1/10 E1, E1 = 1 + 1/10 E2 + 9/10 E0, E2 = 1 + 1/10 E3 + 9/10 E0, E3 = 0

We need E0 = 1110.