Entropy of a Fair Die - Quant Trader Interview Question
Difficulty: Medium
Category: Probability & Statistics
Practice quant interview questions from top firms including Jane Street, Citadel, Two Sigma, DE Shaw, and other leading quantitative finance companies.
Topics: probability, entropy, information-theory, logarithm, mental-math
Problem Description
A fair six-sided die is rolled. Each face has an equal probability of landing face up. Calculate the Shannon entropy of the outcome, expressed in bits. The Shannon entropy $H(X)$ is defined as: $H(X) = - \sum p_i \log_2 p_i$, where $p_i$ is the probability of outcome $i$.
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