Episode -18: KARL PEARSON’S CO-EFFICIENT OF

SKEWNESS
Dear learners, a warm welcome to you to this
episode. This episode focuses on KP’s co-efficient of
skewness.
The learning objectives of this episode are:
1. To famialirize with meaning and definitions of
skewness
2. To understand the various characteristics of
skewness
3. To learn different methods of computation of
skewness
4. To get acquainted with computation of
Karlpearson’s co-efficient of skewness.
5.
Once again the current episode is dividedinto 5 subparts;
1. MEANING AND DEFINITIONS OF SKEWNESS
2. VARIOUS CHARACTERISTICS OF SKEWNESS
3. DELIBERATES ON METHODS OF COMPUTING
SKEWNESS
4. COMPUTATION OF KARLPEARSON’S CO-
EFFICIENT OF SKEWNESS

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 5. ENCAPSULATESTHE DIFFERENCESBETWEEN
SKEWNESSAND VARIATION.
Now let’s understand whatskewness is
Segment 1-Introduction to skewness:
The measures of central tendency do not disclose the
complete picture of the frequency distribution.Means and
SD of Two distributions may be same, but they differ in
their shape of distribution. Further analysis of their
characteristics is necessary and this is done with the help
of skewness and kurtosis.
Meaning of Skewness: it refers to lack of symmetry
or lackof similarity in the distribution of data. Such
distribution which lacks symmetry is called skewed
distribution.
How do we say that data is skewed or symmetrical?In a
symmetrical distribution the values of mean, median and
mode aresame. If the value of mean is > than mode then
theskewnessis positiveskewness and if mode is greater
than mean, skewness is negative skewness.
 According to Croxton and Cowden, “When a series is
not symmetrical, it is said to be asymmetrical, or
skewed.”
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 According to Garret, “A distribution is said to be
skewed when the Mean and the Median fall at different
points in the distribution and balance (or the centre of
gravity) is shifted to one side or the other to left or
right”.

 According to Simpson and Kafka, “Measures of

skewness tell us the direction and the extent of
skewness. In symmetrical distribution, the Mean,
Median and Mode are identical. The more the Mean
moves away from the Mode, the larger the asymmetry or
skewness”.

Segment 2; CHARACTERISTICS OF
SKEWNESS
The analysis of definitions points to the following
characteristics;

 1. In a skewed distribution mean moves away from the

mode;

 2. In a positive skewness mean moves to the right side

of mode i.e. mean> mode

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 3. In a negative skewness, mean moves to the left side
of mode i.e. mean<mode

 4.skewness indicates the direction and extent of

skewness;

Let’s see the diagramof symmetrical/normal distribution

data and skewed distribution

It is clear from the above diagram that

a. In a symmetrical distribution, the values of mean,
median and mode are same
b. In positively skewed distribution mean is >mode and
median can be found in between mean and mode
c. In a negatively skewed distribution the mode>mean and
median lies in between the two.
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Segment 3:METHODS OF CALCULATING
SKEWNESS:
Measures ofskewness can be both absolute as measure
well as relative measure. Since in a
symmetricaldistribution mean, median and mode are
identical.
If the difference between the mean and mode is more,
then the skewness becomes larger or the asymmetry
becomes larger;
The absolute skewness measures the difference between
the meanand mode. But it cannot be used for purposes of
comparison.
In order to make comparison, it is better to use relative
measure of skewness.
1. karlpearson’s co-efficient of skewness;
The method is used for measuring skewness. It is the
division of difference between mean and mode by
standard deviation.

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 mean − mode
SKp =
σ

The pearsonian Co-efficient of skewnessmeasures the

direction of skewness by observing whether the mean is
greater than mode.
The value of this co-efficient becomes zero in case of a
symmetrical distribution. In practice, the value of this
coefficientlies between +1 or-1.

2. Bowley’s co-efficient of skewness: this method

measuresskewness using quartiles. The formula for
computing the skewness is as under:

Q3 − Q2 − (Q2 − Q1)
SKB =
Q3 − Q1

OR

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 Q3 + Q1 − 2MED
SKB =
Q3 − Q1

How to interpret the skewness?

If SKB=0 then symmetrical;
If skb>o then, then positive skewness;
Ifskb<0 then negativeskewness
The value of this coefficient will be zero in case of
symmetrical distribution. If the value is greater than zero,
then itis positively skewed and if value is less than zero, it
is negatively skewed distribution.
This method is useful in case of open-end distributions
and where extreme values are present.

Segment 4 Computation of karl-pearson’s

co-efficient of skewness:
From the following data relate to the profits of 964
companies;

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Profits (Rs. In lakhs) No of companies
50-60 15
60-70 50
70-80 190
80-90 196
90-100 308
100-110 200
110-120 5

The formula is
mean − mode
SKp =
σ
The following steps are to be followed for computing karl
-pearson’s co-efficient of skeness:
First step is Computation of midpoint inorder to
calculate mean;

Profits No of MP
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(Rs. In companies X
lakhs)
50-60 15 55
60-70 50 65
70-80 190 75
80-90 196 85
90-100 308 95
100-110 200 105
110-120 5 115

Second step is computation of ‘d’i.e. (X-

A)/i
Profits No of MP X− 85
(Rs. In companies X 10
lakhs) d
50-60 15 55 -3
60-70 0 65 -2
70-80 190 75 -1
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 80-90 196 85 0
90-100 308 95 +1
100-110 200 105 +2
110-120 5 115 +3
Fourth step computation of fd and fd2
Profits No of MP X− 85 fd fd2
(Rs. In companies X 10
crores) d (fdxd)

50-60 15 55 -3 -45 135

60-70 50 65 -2 -100 200
70-80 190 75 -1 -190 190
80-90 196 85 0 0 0
90-100 308 95 +1 308 308
100- 200 105 +2 400 800
110
110- 5 115 +3 15 45
120

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 N=964 ∑fd=388 ∑fd2
=1678

Fifth step: calculation of mean:

∑fd
X̅ = A + Xi
N
388
X̅ = 85 + X 10
964
= 89.02
Sixth step:Calculation of mode
By inspection mode lies in the class 90-100 as it has
highest frequency;

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 ∆1
Mode= L + Xi
∆1+ ∆2
112
=90 + X10 = 90+5.09=95.09
112 + 108
∆1= f1-f0 i.e. (308-196), ∆2=f1-f2 i.e.
(308-200)

8th step: computation of standard deviation:

∑fd ∑fd
2
2
σ= − X10
N N
1678 388 2
= − X10
964 964
SD =1.579X10=15.79

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9 th step:
MEAN − MODE
Computation of SKP = skp =
σ
89.02 − 95.09
SKP = = -0.384
15.79
As the value is negative, the data is negatively skewed
distribution.

5TH SEGMENT- DIFFERENCES

BETWEEN THE VARIATION AND
SKEWNESS
Friends as we know that dispersion deals with the extent
to which each data varies from one another from the
average value
The measure of variation helps understand the
reliabilityof averages in the given data set.If variation is
large, the averages are not dependable.

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The measure of Skewness reveals the difference between
manner of distribution of given data compared to
symmetrical distribution. The value of skewness is
measured using mean, median and mode; it could be
positive or negative depending upon the values of mean,
median and mode;
What are the differences between variation and
skewness:

Variation Skewness
1 It helps measure This measures the
the dispersion of asymmetry in the
data over the range statistical distribution
from the normal
distribution
2 It measures the It helps analyse whether
dispersion of data the data is symmetrical
around the or assymetrical
measures of central
tendency
3 The commonly This uses mean, median
computed and mode value to
Measures of determine whether the
Dispersion’s are data is positively skewed

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 Standard or negatively skewed
Deviations, Range,
Quartile Deviation
etc.
4 It measures the It determines the
degree of variation whether the variation is
in the given data high or low
series
5 It is used for various This can be used for the
statistical measures purpose of analysis of
such as regression data in finance and
investment

To conclude this episode, friends we have made efforts

to understand what is skewness, its characteristics,
methods of computation, computation of skewness,
differences between the variation and skewness.
Dear learners, I really appreciate your efforts and
commitment in learning from this program. Let’s meet in
our next episode which focuses on Bowley’s co-efficient
of skewness. Till then, adios, take care.

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