Wednesday, January 05, 2005

What are my chances?

What are my chances? This is the most commonly asked question in the Business Week Forum. What if in my consulting interview I got asked the same question - What were your chances to get admitted to a business school program? Where were you in the entire applicant pool – were you a top 10% or a top 20%? How do I determine that?

Interesting question, isn’t it? It would be just fun to deduce your probabilities and where you stand in the applicant pool. So, I was kind of mulling over this question and I kind of came up with a model of prediction from a purely statistical point of view.

John is applying to 5 schools – A, B, C, D and E. Here are the acceptance rates for each of the schools: A – 10%, B – 10%, C- 20%, D-20% and E-30%.

The chance of getting accepted in any one of the schools, using the law of probabilities is – 0.1*0.9*0.8*0.8*0.7*2 + 0.9*0.9*0.2*0.8*0.7*2 + 0.9*0.9*0.8*0.8*0.3 = 41.76%

Similarly, you can deduce all the other possibilities – getting admitted to 2 schools, 3 schools etc. Now comes the interesting part, for example if the probability to get admitted to any three schools is 8% and you get admitted to 3 schools – then you can obviously say that you are among the top 8% of the applicant pool applying to all these 5 schools. Assuming that the applicant pool to these 5 schools is a fair approximation of the entire applicant pool – you can confidently say that you are among the top 8% of the applicant pool.

To all those curious souls, here is an interesting way to determine where you stand…

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