If a distribution has "fat tails," it exhibits
A) positive skewness.
B) negative skewness.
C) a kurtosis of zero.
D) kurtosis.
E) positive skewness and kurtosis.

Question

Quizplus · Accepted Answer

Fat tails in a distribution indicate that the distribution has extreme values with higher than normal likelihood, which is a characteristic of kurtosis, not specifically positive skewness, negative skewness, or a kurtosis of zero.

If a Distribution Has "Fat Tails," It Exhibits