TL;DR
Vandermonde Identity: Splits a combination across two groups: C(m+n, r) = sum of C(m,k)C(n,r-k). 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
Vandermonde Identity
Splits a combination across two groups: C(m+n, r) = sum of C(m,k)C(n,r-k).
The Vandermonde identity (or Vandermonde convolution):
Intuition: Choose items from a pool of red and blue objects. You can take red and blue for each valid .
When to use: Problems where you're choosing from two distinct groups, or when you see a sum of products of binomial coefficients that you need to simplify.
Special case: gives .
Alternative approach: Double counting or a combinatorial argument (the "committee from two clubs" story) derives this from first principles without memorizing the formula.
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