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**CFA Practice Question**

Which is true of all skewed distributions?

II. Their mean and median are not equal.

III. They are characterized by many small values and a few big values.

I. They are not symmetrical.

II. Their mean and median are not equal.

III. They are characterized by many small values and a few big values.

A. II and III.

B. I, II and III.

C. I and II.

**Explanation:**A skewed distribution is not symmetrical and its mean and median are not equal. While a positively skewed distribution is characterized by many small values and a few big values, the opposite is true of negatively skewed distributions. So III is false as far as "all skewed distributions" are concerned.

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**User Contributed Comments**
5

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

Kunga |
I wish there was some clarification about "small" and "big" values. Statement III can be thought of differently depending on if the question means absolute or relative values. |

Sheeb |
Yeah, I got hung up on the "big" & "small" values too. I was thinking isn't that WHY it's skewed but I see what they mean. |

farhan92 |
i just though by big they meant outliers (largely negative or largely positive)! |

GBolt93 |
very misleading. I would consider a highly negative number large not small. E.g. stock market is negatively skewed because of large losses. |

nickcoulby |
Impossible to know the interpretation on this |