The Chi-Squared Origin - Quant Trader Interview Question
Difficulty: Medium
Category: Probability & Statistics
Practice quant interview questions from top firms including Jane Street, Citadel, Two Sigma, DE Shaw, and other leading quantitative finance companies.
Topics: probability, statistics, chi-squared, normal-distribution
Problem Description
Suppose you are modeling market volatility and need to understand the properties of sums of squared standard normal random variables.
Let $Z_1, ..., Z_k$ be i.i.d. standard normal random variables (mean 0, variance 1). What is the distribution of $ \sum_{i=1}^{k} Z_i^2 $?
Practice this medium trader interview question on MyntBit - the all-in-one quant learning platform with 200+ quant interview questions for Jane Street, Citadel, Two Sigma, and other top quantitative finance firms.