Quant Memo
Probability/●●●●●

The drunk one step from the cliff

Asked at SIG, DRW

A drunk stands at position 11, one step from a cliff at position 00. Each step he moves toward the cliff (to a lower number) with probability qq or away from it (to a higher number) with probability p=1qp = 1 - q. The line extends infinitely away from the cliff. If he ever reaches position 00, he falls.

What is the probability he eventually falls off the cliff, starting from position 11?

Your answer

This one is open-ended. Work it through, then check your reasoning against the full solution.

More Probability questions