QuantForcesquant interview practice

RB_CH01_Q046. 52 cards red one dollar each

difficulty 1800·answer type: strategy·Not solved

Problem

(***) You have 52 playing cards (26 red, 26 black). You draw cards one by one. A red card pays you a dollar. A black card fines you a dollar. You can stop any time you want. Cards are not returned to the deck after being drawn. What is the optimal stopping rule in terms of maximizing expected payoff? Also, what is the expected payoff following this optimal rule?

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