TL;DR
Birthday Paradox: With 23 people, there is a >50% chance two share a birthday — collisions happen sooner than you think. This concept is essential for quantitative trading interviews and is frequently tested at top firms.
By Valenke Exam Prep Team·Last updated 2026-06-01
Probability
Birthday Paradox
With 23 people, there is a >50% chance two share a birthday — collisions happen sooner than you think.
The birthday paradox is the surprising fact that in a group of just 23 people, there's a greater than 50% chance that two share a birthday.
Setup: people, each with a uniformly random birthday from 365 days. What's the probability that at least two share a birthday?
The complement trick:
Approximation: Using for small :
Setting this to and solving: n ≈ 2 ⋅ 365 ⋅ ln 2 ≈ 22.5 n \approx \sqrt{2 \cdot 365 \cdot \ln 2} \approx 22.5 , confirming n = 23 n = 23 .
General rule: In a space of N N equally likely values, expect a collision after about π N / 2 ≈ 1.177 N \sqrt{\pi N / 2} \approx 1.177\sqrt{N} samples.
Concrete example: A hash function outputs 32-bit values (N = 2 32 ≈ 4.3 × 10 9 N = 2^{32} \approx 4.3 \times 10^9 ). After just π ⋅ 2 32 / 2 ≈ 82,138 \sqrt{\pi \cdot 2^{32} / 2} \approx 82{,}138 random hashes, there's a 50% collision probability. This is why 32-bit hashes are dangerously short.
Intuition: People compare the number of people (23) to the number of days (365) and think collisions are rare. But the number of pairs is ( 23 2 ) = 253 \binom{23}{2} = 253 , and each pair has a 1 365 \frac{1}{365} collision chance. With 253 independent "shots," a hit becomes likely.
When to use: Estimating collision probabilities in hashing, cryptography, sampling, and randomized algorithms. Any time you're drawing from a large space and wondering "how many draws until a repeat?"
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