AuthorTopic: Skewness of Distribution??
cfaunicorn
@2010-02-02 01:55:00
I'm totally confused about the skewness of distribution. According to the text, mean=median in a normal distribution, how about the mode? And if +ve skewed,mean>median>mode. Here are my questions:
(1) Consider the sample {-12,0,3,3,4,6,6,6,12,22},where i calculated mean=5,median=5,mode=6,Sk=0.0447. The Sk formula suggests that this is +ve skewed; however, the mean=medianmedian>mode. WHY IS THAT AND HOW WILL THE GRAPH LOOK LIKE?
(2) Consider the sameple {-11,1,3,4,4,6,6,6,12,22},where i calculated mean=5.3,median=5,mode=6, Sk=0.13. This is mean>median Again, with mode being the largest, shouldn't the graph look like negatively skewed??

I'm totally confused. Can someone pls help? :(
muna
@2010-03-22 04:26:42
The key here is about the skewness of a 'normal distribution'. There are numerous characteristics about a 'normal distribution' that your samples do not satisfy. in a normal the mean or arithmetic average remains the peak, but the more common occurance (mode) will be greater than the (to the right of) the mean.
Hope this helps buddy!

CFA Discussion Topic: Skewness of Distribution??

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