MediumProbability

The Secretary Problem

Jane StreetDE Shaw

You interview 100 candidates in random order, must accept or reject each on the spot, and want the single best. The optimal rule observes and rejects an initial fraction, then takes the first candidate better than everyone seen so far. Roughly what percentage should you observe first?

Approach

Balance learning the field against the risk the best is in your rejected sample.

The magic number is 1/e.

Answer

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