1,000+ quant interview questions for Jane Street, Citadel, Two Sigma, DE Shaw, and other top quantitative finance firms.
Statistical analysis and quantitative modeling problems
Trading MCQs, probability brainteasers, and market scenarios
Practice quant interview questions on MyntBit - the all-in-one quant learning platform. Free questions available for C++ coding, Python problems, probability brainteasers, and trading MCQs.
Difficulty: Hard
Category: Statistics & Regression
Practice quant interview questions from top firms including Jane Street, Citadel, Two Sigma, DE Shaw, and other leading quantitative finance companies.
Topics: statistics, likelihood-ratio-test, hypothesis-testing, asymptotic-distribution
Suppose you are building a statistical model to predict stock returns. You want to compare two nested models using the Likelihood Ratio Test (LRT). Model 0 is the simpler model with $p$ parameters, and Model 1 is a more complex model with $p + k$ parameters. Let $L_0$ be the maximized likelihood of Model 0, and $L_1$ be the maximized likelihood of Model 1. The likelihood ratio test statistic is defined as $Λ = -2 \ln(L_0 / L_1)$. Under the null hypothesis ($H_0$) that the simpler model (Model 0
Practice this hard trader interview question on Myntbit - the all-in-one quant learning platform with 1000+ quant interview questions for Jane Street, Citadel, Two Sigma, and other top quantitative finance firms.