13/09/2025
after ’s Inequality and Chebyshev’s Inequality, the natural next step in your probability & statistics journey is the
(MGF).
MGFs are powerful because they:
👉Encode all the moments (mean, variance, etc.) of a random variable.
👉Provide an alternative way to characterize distributions.
👉Are used in proofs of the Central Limit Theorem and in deriving distributions of sums of random variables.