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TL;DR

Partial Fraction Decomposition: Break a rational function into simpler fractions: 1/(k(k+1)) = 1/k - 1/(k+1). 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
Analysis

Partial Fraction Decomposition

Break a rational function into simpler fractions: 1/(k(k+1)) = 1/k - 1/(k+1).

Partial fraction decomposition breaks a complicated rational function into a sum of simpler ones: P(x)Q(x)=A1(xr1)+A2(xr2)+\frac{P(x)}{Q(x)} = \frac{A_1}{(x - r_1)} + \frac{A_2}{(x - r_2)} + \cdots Intuition: Just as you can factor an integer into primes, you can factor a rational function into "atomic" fractions. Each factor in the denominator contributes one simple fraction. This makes integration, summation, and generating function extraction straightforward. Algorithm for distinct linear factors: 1. Factor the denominator: Q(x)=(xr1)(xr2)(xrn)Q(x) = (x-r_1)(x-r_2)\cdots(x-r_n) 2. Write: P(x)Q(x)=A1xr1+A2xr2+\frac{P(x)}{Q(x)} = \frac{A_1}{x-r_1} + \frac{A_2}{x-r_2} + \cdots 3. Multiply both sides by Q(x)Q(x) and solve for AiA_i (plug in x=rix = r_i) Concrete example: Decompose 1k(k+2)\frac{1}{k(k+2)}. 1k(k+2)=Ak+Bk+2\frac{1}{k(k+2)} = \frac{A}{k} + \frac{B}{k+2} Multiply by k(k+2)k(k+2): 1=A(k+2)+Bk1 = A(k+2) + Bk. Set k=0k=0: 1=2A1 = 2A, so A=1/2A = 12\frac{1}{2}. Set k=2k=-2: 1=2B1 = -2B, so B=1/2B = -12\frac{1}{2}. Result: 1k(k+2)=12(1k1k+2)\frac{1}{k(k+2)} = \frac{1}{2}\left(\frac{1}{k} - \frac{1}{k+2}\right). When to use: Simplifying rational expressions for telescoping sums, integration, inverse Laplace transforms, and generating function extraction. A standard step in solving recurrences via generating functions. This is a fundamental technique — essential plumbing for analysis, combinatorics, and probability alike.

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