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Rolling Jarque-Bera Normality Test

Hard · statistical_analysis · Quant Researcher interview question · statistics, hypothesis_testing, rolling_window, quant_finance, pandas

The assumption of normality in asset returns is a foundational simplification in quantitative finance, yet real-world market data often exhibits skewness and excess kurtosis known as fat tails. The Jarque-Bera test provides a statistical method to evaluate goodness-of-fit by comparing sample skewness and kurtosis against those of a normal distribution, allowing analysts to identify regimes where standard models may fail. Task Implement a function solution that performs a rolling Jarque-Bera tes