The Average Time Between Trades for a High-Frequency Trading Investment

question 20

Multiple Choice

The average time between trades for a high-frequency trading investment firm is 40 seconds. Assume the time between trades is exponentially distributed. What is the probability that the time between trades for a randomly selected trade and the one proceeding it is less than 20 seconds?

• A) 0.1354
• B) 0.3935
• C) 0.6065
• D) 0.8446

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Definitions:

Integrity Test

A test designed to assess a potential employee's honesty, trustworthiness, and adherence to moral and ethical principles.

Disruptive Behaviours

Actions by individuals that interrupt or negatively impact the normal flow of work or environment, potentially harming the organization's culture.

Integrity Testing

Evaluations designed to assess a potential or current employee's honesty, morality, and adherence to ethical standards.

Polygraph Testing

A technique used in investigations and security screening that measures physiological responses to determine the truthfulness of answers provided by an individual.