You are given a set U of n points on the plane and you can compute distance between any pair of points in constant time. Choose a subset of U called C such that C has exactly k points in it and the distance between the farthest 2 points in C is as small as possible for given k. 1 < k <= n
What's the fastest way to do this besides the obvious n-choose-k solution?
A solution is shown in Finding k points with minimum diameter and related problems - Aggarwal, 1991.
The algorithm described therein has running time: O(k^2.5 n log k + n log n)
For those who have no access to the paper: the problem is called k-diameter and definied as
Find a set of k points with minimum diameter. The diameter of a set is the maximum distance between any points of the set.
I cannot really give an overview over the presented algorithm, but it includes computing the (3k - 3)th order Voronoi diagram of the points, and then solve the problem for each of the O(kn) Voronoi sets (by computing maximum independent sets in some bipartite graphs)... I guess that I am trying to say is, that it is highly non-trivial, and far beyond both an interview and this site :-)