Skip to main content

TL;DR

Catalan Numbers: Count balanced parentheses, binary trees, non-crossing partitions, and lattice paths. 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
Combinatorics

Catalan Numbers

Count balanced parentheses, binary trees, non-crossing partitions, and lattice paths.

The Catalan numbers CnC_n count a remarkable variety of combinatorial structures: Cn=1n+1(2nn)=(2n)!(n+1)!n!C_n = \frac{1}{n+1}\binom{2n}{n} = \frac{(2n)!}{(n+1)!\, n!} What they count: - Balanced strings of nn pairs of parentheses - Full binary trees with n+1n+1 leaves - Monotonic lattice paths from (0,0)(0,0) to (n,n)(n,n) that don't cross the diagonal - Triangulations of a convex (n+2)(n+2)-gon - Non-crossing partitions of {1,,n}\{1, \ldots, n\} Recurrence: C0=1C_0 = 1, and Cn+1=k=0nCkCnkC_{n+1} = \sum_{k=0}^{n} C_k C_{n-k}. Generating function: C(x)=114x2xC(x) = \frac{1 - \sqrt{1-4x}}{2x}. Intuition: Catalan numbers arise whenever you have a "ballot problem" structure — counting paths that stay on one side of a boundary. The reflection principle or cycle lemma proves the formula. When to use: If a problem asks you to count something and the first few values are 1, 1, 2, 5, 14, 42 — it's Catalan. First few values: C0=1, C1=1, C2=2, C3=5, C4=14, C5=42C_0 = 1,\ C_1 = 1,\ C_2 = 2,\ C_3 = 5,\ C_4 = 14,\ C_5 = 42.

Ready to practice for the Valenke Finance Exam?

Adaptive practice powered by Item Response Theory targets your weak areas. Start with 3 free sessions.

Start free practice →