- CFA Exams
- CFA Level I Exam
- Study Session 2. Quantitative Methods (1)
- Reading 7. Statistical Concepts and Market Returns
- Subject 9. Symmetry and Skewness in Return Distributions

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**CFA Practice Question**

The mean of the population of ten scores: 78, 91, 91, 94, 74, 23, 63, 22, 78, 89, is 70.3 and the modes are 78 and 91. The skewness of this population is ______.

B. zero

C. positive

D. not determined

E. positive or negative depending on the score

A. negative

B. zero

C. positive

D. not determined

E. positive or negative depending on the score

Correct Answer: A

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**User Contributed Comments**
9

User |
Comment |
---|---|

yanpz |
2 modes are ok? |

JP09 |
The modes have nothing to do with the question. Start with the mean and then find out whether the lowest (negatively skewed) or highest (positively skewed) value is furthest from the mean. |

danlan |
Median is higher than mean, so the skewness is negative. |

faya |
mean is lower than both modes, therefore negative skew |

cp24 |
A 2-mode distribution is called a "bi-modal" distribution. |

ambar |
There can be 0 or any number of modes |

mencob |
observe the numbers, there is a high concentration towards 80. And only two values around 20. Hence, the mean will be "pulled" by these "extreme values" whereas the median and mode will not be affected by the latter. Therefore we have: mean<median<modes: negative skew |

jansen1979 |
Order (from low to high) negative: mean, median, mode positive: mode, median, mead Therefore answer A. |

2014 |
what does mean Means. Mean is average of all values. So if u expect shape to be positive. What should u rely on. Mean or median or mode. Answer is Mean (Because median is just middle observation and mode is most frequently occuring) so for positive shaped Mean>Median>Mode |