Secretary problem
You are interviewing n candidates for a position, arriving in uniformly random order. After each interview you must hire or reject immediately — no going back. You want to maximise your probability of hiring the single best candidate.
The optimal strategy has a clean structure: observe and reject the first r candidates (the “scouting” phase), then hire the first candidate strictly better than all of them.
The success probability for cutoff r is:
The 37% rule
The optimal cutoff is:
and the resulting success probability converges to:
The red dot on the curve marks the optimal r for your chosen n. Notice it always sits at roughly 37% of the way through the candidate list, and achieves roughly 37% success probability — a coincidence of appearing twice.
What to notice
- Too early and you hire the wrong person. With a tiny cutoff, you almost always settle for a mediocre candidate seen early.
- Too late and you miss the best. With a large cutoff, the best candidate often appears in the scouting phase and you never hire them.
- The curve is asymmetric. The right tail falls sharply — cutting off too late is worse than cutting off a bit too early.
- The rule is n-independent in the limit. Whether you interview 20 or 100 candidates, always observe ~37% first.
Real applications
The secretary problem formalises optimal stopping, which appears in:
- Choosing when to sell a house (after seeing enough offers to set a benchmark)
- Deciding when to commit in a relationship
- Algorithm design (online algorithms that must make irrevocable decisions with incomplete information)