May 28, 2008

hedge fund utility function / statistics question

can someone explain, in a really dumbed down way, what "higher moments about the mean" means? what does "higher moments" mean?

i understand kurtosis and skewness but i dont understand what the phrases above are talking about....

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4 Comments

j-rad

18y

Skewness and Kurtosis are the "higher moments" that you are rwferring to - the moments that non-normal distributions exhibit.

Skewness is referred to as the third moment, and Kurtosis is the fourth moment.

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Authored by: Certified Corporate Development Professional - ManagerCertified Corporate Development Pro

j-rad

18y

Double post.. my fault.

If you are looking for an explanation of "moments", I would check out wikipedia or something like that for that mathematical term.

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Authored by: Certified Corporate Development Professional - ManagerCertified Corporate Development Pro

hodeez

18y

variance/std dev is 2nd moment

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mxc

18y

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