Coin Tosses needed for Consecutive Heads | Quant Interview Questions

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Question: A fair coin is tossed repeatedly until three consecutive tosses are heads. What is the expected number of coin tosses?

Alternate question context (same answer): A stock's daily returns are identically and independently distributed, having a 50% probability of positive returns and a 50% probability of negative returns. How many trading days before you observe a streak of three consecutive winning days?

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Timecodes
00:00 - Series Intro: Quant Interview Questions
00:04 - Question
00:37 - Understanding the Problem
01:16 - Solving the Problem
02:49 - Solving the General Case
04:33 - Simulating the Results
05:03 - Outro

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These should cover all the types of interview problems that one encounters at hedge funds such as Two Sigma (2sigma), Citadel, WorldQuant, BlackRock, Optiver, Jane Street, Akuna Capital, Hudson River Trading, etc.

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Music: https://www.bensound.com
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