The blue-eyed islanders
Asked at Jane Street, Citadel
On an island live 100 people with blue eyes and some number with brown eyes. Everyone is a perfect logician. There are no mirrors and no one may communicate about eye color. The rule: anyone who deduces their own eye color must leave the island that midnight.
Everyone can see everyone else's eyes, so each blue-eyed person sees 99 other blue-eyed people, and each brown-eyed person sees 100. No one knows their own color.
One day a trusted visitor announces publicly: "At least one of you has blue eyes." Everyone hears it and knows everyone heard it.
What happens, and on which night?
Show a hint
Start absurdly small. What if there were only 1 blue-eyed person? Only 2? Build the induction upward.