Determine Probability of Single Ride on Following Day
LyftData Scientist · Technical Screen
Last updated
Evaluates a binomial probability setup for a ride-pricing experiment with two independent offers. Strong answers model the number of reasonable prices as Binomial(2, P), compute exactly one success as 2P(1-P), and compute permanent-rider probability as P squared.
Scenario
Pricing experiment: each new rider is offered two rides on day-1; each ride price is reasonable with independent probability P.
Question
Calculate the probability that a rider will take exactly one ride the next day. Calculate the probability that the rider becomes a permanent rider (rides every day after the trial).
Hints
Model the three price-response outcomes and use probability trees or a Markov chain.
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