TL;DR
Stirling Numbers (Second Kind): S(n,k) counts ways to partition n objects into exactly k non-empty groups. 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
Stirling Numbers (Second Kind)
S(n,k) counts ways to partition n objects into exactly k non-empty groups.
Prerequisites
Stirling numbers of the second kind, written or , count the number of ways to partition a set of elements into exactly non-empty, unlabeled subsets.
Intuition: Think of distributing distinguishable employees into identical project teams, where every team must have at least one member. The teams are unlabeled — only who is with whom matters, not which team is "Team A."
Recurrence:
The new element either (a) joins one of the existing groups ( choices), or (b) forms a new singleton group (reducing to groups for the remaining ).
Explicit formula (via inclusion-exclusion):
Concrete example: . Partition into 2 non-empty groups:
.
Connection to labeled boxes: The number of surjections from elements onto labeled bins is .
First few values:
.
When to use: Problems about distributing distinct objects into identical groups, counting surjections, or computing Bell numbers . Appears in occupancy problems and in the combinatorics of moments (connecting ordinary moments to factorial moments).
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