Kurtosis

› Kurtosis is from the Greek word kyrtos or Kurtos, meaning

bulging. In statistics kurtosis (or excess) is a statistical
measure used to describe the distribution of observed data
around the mean. It measures the relative peakedness or
flatness of a distribution (as compared to the normal
distribution, which shows a kurtosis of zero). A kurtosis of a
data set is computed using the formula:
𝒏(𝒏+𝟏) 𝒙𝟏 −𝒙 𝟒 𝟑(𝒏−𝟏)𝟐
› Kurt = ∑ -
(𝒏−𝟏)(𝒏−𝟐)(𝒏−𝟑) 𝒔 (𝒏−𝟐)(𝒏−𝟑)
Where: kurt = kurtosis
n = sample population
x = the value of any particular observations or
measurement
x = sample mean
s = sample standard deviation
Three Types of Kurtosis
1. Leptokurtic are distribution where values clustered heavily
or pile up in the center. There are tall distribution with narrow
humps and long and high tails. Its kurtosis is positive.
(kurtosis >0) and it denotes a high degree of peakedness.
2. Mesokurtic are intermediate distribution which are neither
too peaked nor too flat. The values are immediately
distributed about the center. Its kurtosis is zero (kurtosis = 0).
3. Platykurtic are flat distributions with values more evenly
distributed about the center with broad humps and shot tails.
Its kurtosis is negative (kurtosis < 0) and it denotes a low
degree of peakedness
Types of Kurtosis
Example:
The daily rates of a sample of eight employees atGMS
Inc. are P550, P420, P560, P500, P700,P670, P860, P480.
Determine the kurtosis and describe the type.
Solution:
Step 1: Compute the mean of the data set
∑𝑥 550+420+560+500+700+670+860+480 4,740
x = 𝑛 = 8
= 8
=592.50
Step 2: Subtract the mean from each of the value in the data
set.
Step 3: Square the x - x̅ , then get the sum
Step 4: Solve for standard deviation using formula
∑ 𝑥 −𝑥 2
s= 𝑛 −1
𝑥 −𝑥
Step 5: Obtain the value of
𝑠
𝑥 −𝑥 4
Step 6: Compute for the values of then get the sum
𝑠
 Step 1 Step 2 Step 3 Step 5 Step 6

x x-x 𝑥 −𝑥 2 𝑥 −𝑥 𝑥 −𝑥 4

𝑠 𝑠
550 -42.5 1,806.25 -0.2974 0.0078
420 -172.5 29,756.25 -1.2071 2.1232
560 -32.5 1,056.25 -0.2274 0.0027
500 -92.5 8,556.25 -0.6473 0.1755
700 107.5 11,556.25 0.7523 0.3202
670 77.5 6,006.25 0.5423 0.0865
860 267-5 71,556.25 1.8719 12.2779
480 -112.5 12,656.25 -0.7872 0.3841
∑x = 4,740 ∑(x - x) = 0 ∑ 𝑥 − 𝑥 2 =142,950 𝑥 −𝑥 4
∑ =15.3779
𝑠

Step 4:
s = 20,421.43
∑ 𝑥 −𝑥 2
142,950
s= s=
𝑛 −1 8 −1 s = 142.90
Step 7: Applying formula to obtain the value of
kurtosis
𝒏(𝒏+𝟏) 𝒙𝟏 −𝒙 𝟒 𝟑(𝒏−𝟏)𝟐
› Kurt = ∑ -
(𝒏−𝟏)(𝒏−𝟐)(𝒏−𝟑) 𝒔 (𝒏−𝟐)(𝒏−𝟑)
𝟖(𝟖+𝟏) 𝟑(𝟖−𝟏)𝟐
› Kurt = (𝟖−𝟏)(𝟖−𝟐)(𝟖−𝟑)
𝟏𝟓. 𝟑𝟕𝟕𝟗 - (𝟖−𝟐)(𝟖−𝟑)
= 0.3724
Therefore, we conclude that the distribution on the daily
rates of employee is somewhat leptokurtic.