Give the result of each squared number between 1 and 100 (by head, no pencils or paper allowed)? What's the sum of it? What's the average?
I tried to calculate the results as best I could.
How many wrong results did you give? What is your margin of error (variance) how could you measure it? Where is this error bigger?
I said I made two errors, which turned out to be wrong – I made no errors. Calculating the margin of error, I said I could use basic calculus and draw the function on a piece of paper, then using the first derivative as an ‘error measure.’
Imagine that as part of your contract for working here, there’s a clause saying that if you use Facebook again you will have your arms ripped off. What would be the price you’d request to sign the contract, and the opportunity cost of not using Facebook?
I responded that I would need both arms to work as a prop trader, but that Facebook is now vital for everything. Without arms, I wouldn’t be able to work efficiently and wouldn’t be able to cover my high medical bills. I attempted to project my future cashflows over a 10 year period (the point at which I would plan to retire from prop trading) and then discounted it by a 5% risk free rate. This gave me a number in a ball park of $15-20m.
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