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  • Central Location Variability: Shape

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    Carlos Andre Payares Luna
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    The document discusses the concept of skewness, which is a measure of the asymmetry of a distribution. It provides the formula for calculating skewness, which involves dividing the third central moment of a distribution by the cube of the standard deviation. Positive skewness indicates a distribution with an asymmetric tail extending toward more positive values, while negative skewness indicates a tail extending toward more negative values. When skewness equals 0, the distribution is symmetric. Examples of distributions with positive and negative skewness are illustrated with charts.

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    1.19 Measures_of_Shape

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    The document discusses the concept of skewness, which is a measure of the asymmetry of a distribution. It provides the formula for calculating skewness, which involves dividing the third central moment of a distribution by the cube of the standard deviation. Positive skewness indicates a distribution with an asymmetric tail extending toward more positive values, while negative skewness indicates a tail extending toward more negative values. When skewness equals 0, the distribution is symmetric. Examples of distributions with positive and negative skewness are illustrated with charts.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    8 views4 pages

    Central Location Variability: Shape

    Uploaded by

    Carlos Andre Payares Luna
    The document discusses the concept of skewness, which is a measure of the asymmetry of a distribution. It provides the formula for calculating skewness, which involves dividing the third central moment of a distribution by the cube of the standard deviation. Positive skewness indicates a distribution with an asymmetric tail extending toward more positive values, while negative skewness indicates a tail extending toward more negative values. When skewness equals 0, the distribution is symmetric. Examples of distributions with positive and negative skewness are illustrated with charts.

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    © All Rights Reserved
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    of 4

    Shape

    ✓ Central Location
    ✓ Variability

    What about shape?


    • Skewness 1 n
     
    n − 1  i =1
    ( 3
    Xi − X  )
    CS = 
    =SKEW() in Excel
    s3

    Bond Business School Data Analytics for Decision Making – Lecture 1c 1


    𝑆𝑘𝑒𝑤𝑛𝑒𝑠𝑠 = 0 → Symmetric

    Bond Business School Data Analytics for Decision Making – Lecture 1c 2


    𝑆𝑘𝑒𝑤𝑛𝑒𝑠𝑠 > 0 (right)

    Bond Business School Data Analytics for Decision Making – Lecture 1c 3


    𝑆𝑘𝑒𝑤𝑛𝑒𝑠𝑠 < 0 (left)

    Bond Business School Data Analytics for Decision Making – Lecture 1c 4

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